x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-4191764 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Name of each exchange on which registered | |
Common Stock, $.01 par value | The NASDAQ Stock Market LLC | |
(including attached Preferred Share Purchase Rights) |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
Item 15. |
Item 1. | Business. |
Affiliated Managers | ||||||||||||
Duff & Phelps Investment Management | Newfleet Asset Management | Kayne Anderson Rudnick Investment Management | Zweig/Euclid Advisors | Rampart Investment Management | Cliffwater Investments | |||||||
Assets Under Management at December 31, 2015 ($ in billions) | $9.2 | $10.9 | $9.5 | $4.3 | $0.6 | $0.2 | ||||||
Location | Chicago, IL | Hartford, CT | Los Angeles, CA | New York, NY | Boston, MA | Hartford, CT | ||||||
Investment Style | Quality-oriented, equity income; high quality fixed income | Multi-sector, value-driven fixed income | Quality at a reasonable price | Growth at a reasonable price, high quality fixed income | Systematic, disciplined options solutions | Multi-manager alternative portfolios | ||||||
Investment Types | ||||||||||||
Equities | • Utilities | • Large, Mid & Small Cap Core/ Growth/ Value • International & Emerging Markets Small-Cap | • Large Cap Core • Tactical Asset Allocation • International | • Large Cap Core • Low Volatility | ||||||||
Fixed Income | • Tax Advantaged • High Grade Core • Municipals | • Multi-sector • Core • Core Plus • Bank Loans • High Yield • Municipals • Emerging Markets • Structured Products | • California Municipals • Intermediate Total Return & Government | • U.S. Gov't Grade Agencies • Investment Grade Corporates • Sovereign | ||||||||
Alternative/Other | • Real Estate • Infrastructure • Master Limited Partnerships | • Options Strategies | • Multi-Strategy | |||||||||
Products | ||||||||||||
Open-End Mutual Funds | ü | ü | ü | ü | ü | ü | ||||||
Closed-End Funds | ü | ü | ü | ü | ||||||||
Exchange traded funds | ü | |||||||||||
Variable Insurance Funds | ü | ü | ü | ü | ||||||||
UCITs | ü | ü | ||||||||||
Separately Managed Accounts | ü | ü | ü | |||||||||
Institutional | ü | ü | ü | ü | ü |
Retail Products | |||
Mutual fund assets | |||
Open-end funds | $ | 28.9 | |
Closed-end funds | 6.2 | ||
Exchange traded funds | 0.3 | ||
Total fund assets | 35.4 | ||
Separately managed accounts | 6.8 | ||
Total retail assets | 42.2 | ||
Total institutional assets | 5.2 | ||
Total Assets Under Management | $ | 47.4 |
Fund Type/Name | Inception | Assets | Advisory Fee (1) | 3-Year Average Return (2) | |||||||
($ in millions) | (%) | (%) | |||||||||
Alternatives | |||||||||||
Virtus Real Estate Securities Fund | 1995 | $ | 1,309.6 | 0.75-0.65 | 10.63 | ||||||
Virtus Dynamic Trend Fund | 1998 | 449.4 | 0.15-0.14 | 7.45 | |||||||
Virtus Global Infrastructure Fund | 2004 | 123.3 | 0.65-0.55 | 4.54 | |||||||
Virtus Global Real Estate Securities Fund | 2009 | 94.8 | 0.85-0.75 | 8.27 | |||||||
Virtus Alternative Total Solution Fund | 2014 | 89.9 | 1.95-1.90 | N/A | |||||||
Virtus Multi-Strategy Target Return Fund | 2015 | 65.2 | 1.30-1.25 | N/A | |||||||
Virtus Herzfeld Fund | 2012 | 49.6 | 1.00-0.95 | 4.65 | |||||||
Virtus International Real Estate Securities Fund | 2007 | 40.2 | 1.00-0.90 | 4.13 | |||||||
Virtus Alternative Income Solution Fund | 2014 | 36.2 | 1.80-1.75 | N/A | |||||||
Virtus Alternative Inflation Solution Fund | 2014 | 29.3 | 1.75-1.70 | N/A | |||||||
Virtus Essential Resources Fund | 2015 | 4.3 | 1.10 | N/A | |||||||
Virtus Select MLP and Energy Fund | 2015 | 4.1 | 1.00 | N/A | |||||||
Virtus Alternative Diversifier (3) | 2005 | — | — | (2.18 | ) | ||||||
Asset Allocation | |||||||||||
Virtus Balanced Fund | 1975 | 512.0 | 0.55-0.45 | 5.07 | |||||||
Virtus Multi-Asset Trend Fund | 2011 | 215.6 | 1.00-0.90 | 0.29 | |||||||
Virtus Tactical Allocation Fund | 1940 | 158.9 | 0.70-0.60 | 5.26 | |||||||
Equity | |||||||||||
Virtus Equity Trend Fund | 2010 | 1,508.6 | 1.00-0.95 | 5.47 | |||||||
Virtus Strategic Growth Fund | 1995 | 450.9 | 0.70-0.60 | 16.16 | |||||||
Virtus Sector Trend Fund | 2003 | 448.6 | 0.45-0.40 | 8.44 | |||||||
Virtus Small-Cap Core Fund | 2002 | 291.7 | 0.75 | 11.17 | |||||||
Virtus Contrarian Value Fund | 1997 | 273.0 | 0.75-0.70 | 4.50 | |||||||
Virtus Quality Small-Cap Fund | 2006 | 229.4 | 0.70 | 12.08 | |||||||
Virtus Small-Cap Sustainable Growth Fund | 2006 | 170.1 | 0.90-0.80 | 13.55 | |||||||
Virtus Growth & Income Fund | 1997 | 156.0 | 0.75-0.65 | 14.43 | |||||||
Virtus Wealth Masters Fund | 2012 | 108.7 | 0.85-0.80 | 10.48 | |||||||
Virtus Mid-Cap Growth Fund | 1975 | 87.3 | 0.80-0.70 | 9.92 | |||||||
Virtus Quality Large-Cap Value Fund | 2005 | 67.7 | 0.75-0.65 | 11.31 | |||||||
Virtus Mid-Cap Core Fund | 2009 | 29.7 | 0.80-0.70 | 14.50 | |||||||
Virtus Low Volatility Equity Fund | 2013 | 5.6 | 0.95-0.85 | N/A | |||||||
Fixed Income | |||||||||||
Virtus Multi-Sector Short Term Bond Fund | 1992 | 7,255.1 | 0.55-0.43 | 1.20 | |||||||
Virtus Senior Floating Rate Fund | 2008 | 604.2 | 0.60-0.50 | 1.92 | |||||||
Virtus Multi-Sector Intermediate Bond Fund | 1989 | 299.3 | 0.55-0.45 | 0.87 | |||||||
Virtus Low Duration Income Fund | 1999 | 280.0 | 0.55-0.45 | 1.45 | |||||||
Virtus Tax-Exempt Bond Fund | 2001 | 194.9 | 0.45 | 2.43 | |||||||
Virtus Credit Opportunities Fund (4) | 2015 | 94.6 | 0.75 | N/A | |||||||
Virtus Bond Fund | 1998 | 72.1 | 0.45-0.40 | 1.35 | |||||||
Virtus High Yield Fund | 1980 | 71.2 | 0.65-0.55 | 1.80 | |||||||
Virtus CA Tax-Exempt Bond Fund | 1983 | 31.8 | 0.45-0.35 | 3.46 | |||||||
Virtus Strategic Income Fund | 2014 | 28.0 | 0.80-0.75 | N/A | |||||||
Virtus Emerging Markets Debt Fund | 2012 | 26.2 | 0.75-0.70 | (1.89) |
Fund Type/Name | Inception | Assets | Advisory Fee (1) | 3-Year Average Return (2) | ||||||
($ in millions) | (%) | (%) | ||||||||
International/Global | ||||||||||
Virtus Emerging Markets Opportunities Fund | 1997 | 9,729.7 | 1.00-0.95 | (3.30 | ) | |||||
Virtus Foreign Opportunities Fund | 1990 | 1,803.5 | 0.85-0.75 | 3.89 | ||||||
Virtus Global Opportunities Fund | 1960 | 161.8 | 0.85-0.75 | 8.83 | ||||||
Virtus Global Equity Trend Fund | 2011 | 46.9 | 1.00-0.90 | 0.93 | ||||||
Virtus International Small-Cap Fund | 2012 | 43.0 | 1.00-0.95 | 7.67 | ||||||
Virtus Emerging Markets Equity Income Fund | 2012 | 34.5 | 1.05-1.00 | (8.66) | ||||||
Virtus Greater European Opportunities Fund | 2009 | 26.6 | 0.85-0.80 | 4.62 | ||||||
Virtus International Equity Fund | 2010 | 7.2 | 0.85-0.75 | 3.07 | ||||||
Virtus International Wealth Masters Fund | 2014 | 5.0 | 0.90-0.85 | N/A | ||||||
Virtus Emerging Markets Small Cap Fund | 2013 | 4.1 | 1.20-1.15 | N/A | ||||||
Variable Insurance Funds | ||||||||||
Virtus Capital Growth Series | 1982 | 210.1 | 0.70-0.60 | 16.47 | ||||||
Virtus International Series | 1990 | 209.9 | 0.75-0.65 | (2.49 | ) | |||||
Virtus Multi-Sector Fixed Income Series | 1982 | 131.8 | 0.50-0.40 | 0.95 | ||||||
Virtus Growth and Income Series | 1998 | 109.8 | 0.70-0.60 | 9.60 | ||||||
Virtus Strategic Allocation Series | 1984 | 106.5 | 0.60-0.50 | 6.27 | ||||||
Virtus Small-Cap Value Series | 2000 | 92.9 | 0.90-0.80 | 12.24 | ||||||
Virtus Real Estate Securities Series | 1995 | 88.2 | 0.75-0.65 | 10.78 | ||||||
Virtus Small-Cap Growth Series | 2002 | 56.1 | 0.85-0.80 | 14.21 | ||||||
Virtus Equity Trend Series | 2011 | 11.1 | 1.00 | 6.06 | ||||||
Global Funds | ||||||||||
Virtus GF Multi-Sector Short Duration Bond Fund | 2013 | 32.2 | 1.75-0.55 | N/A | ||||||
Virtus GF US Small Cap Focus Fund | 2014 | 4.1 | 1.65-0.75 | N/A | ||||||
$ | 28,882.1 |
(1) | Percentage of average daily net assets of each fund. The percentages listed represent the range of management advisory fees paid by the funds, from the highest to the lowest. A range indicates that the fund has breakpoints at which management advisory fees decrease as assets in the funds increase. We pay subadvisory fees on funds managed by unaffiliated subadvisers, which are not reflected in the percentages listed. |
(2) | Represents average annual total return performance of the largest share class as measured by net assets for which performance data is available. |
(3) | This fund contains investments in other Virtus open-end mutual funds. The related assets invested in other Virtus open-end mutual funds are reflected only in the balances of the respective funds. |
(4) | Other Virtus open-end mutual funds invest in this fund, the assets invested in by other Virtus open-end funds are reflected solely in this fund. |
Fund Type/Name | Assets | Advisory Fee | ||||||
($ in billions) | % | |||||||
Balanced | ||||||||
DNP Select Income Fund Inc. | $ | 3.3 | 0.60-0.50 | (1) | ||||
Zweig Total Return Fund Inc. | 0.4 | 0.70 | (2) | |||||
Virtus Total Return Fund | 0.2 | 0.85 | (2) | |||||
Equity | ||||||||
Duff & Phelps Global Utility Income Fund Inc. | 0.9 | 1.00 | (1)(3) | |||||
Zweig Fund Inc. | 0.3 | 0.85 | (2) | |||||
Alternatives | ||||||||
Duff & Phelps Select Energy MLP Fund | 0.2 | 1.00 | (2) | |||||
Fixed Income | ||||||||
Duff & Phelps Utility and Corporate Bond Trust Inc. | 0.4 | 0.50 | (1) | |||||
Virtus Global Multi-Sector Income Fund | 0.3 | 0.95 | (2) | |||||
DTF Tax-Free Income Inc. | 0.2 | 0.50 | (1) | |||||
Total Closed-End Funds | $ | 6.2 |
(1) | Percentage of average weekly net assets. The percentage listed represents the range of management advisory fees paid by the funds, from the highest to the lowest. A range indicates that the fund has breakpoints at which management advisory fees decrease as assets in the fund increase. |
(2) | Percentage of average daily net assets of each fund. |
(3) | The adviser has contractually agreed to waive a portion of its fee for a period of time, which is not reflected in the percentage listed. |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Investment management fees: | |||||||||||
Funds | $ | 209,994 | $ | 249,355 | $ | 213,864 | |||||
Separately managed accounts | 37,296 | 35,152 | 31,510 | ||||||||
Institutional accounts | 17,575 | 16,156 | 15,183 | ||||||||
Total investment management fees | 264,865 | 300,663 | 260,557 | ||||||||
Administration fees | 33,981 | 39,374 | 33,736 | ||||||||
Transfer agent fees | 14,266 | 16,642 | 14,449 | ||||||||
Total | $ | 313,112 | $ | 356,679 | $ | 308,742 |
Item 1A. | Risk Factors. |
• | The value of assets under management can decline due to price declines in specific securities, market segments or geographic areas where those assets are invested. Funds and portfolios that we manage related to certain geographic markets and industry sectors are particularly vulnerable to political, social and economic events in those markets and sectors. If these industries or markets decline or experience volatility, this could have a negative impact on our assets under management and our revenues. For example, certain non-U.S. markets, particularly emerging markets, are not as developed or as efficient as the U.S. financial markets and, as a result, may be less liquid, less regulated and significantly more volatile than the U.S. financial markets. Liquidity in such markets may be adversely impacted by political or economic events, government policies, expropriation, volume trading limits by foreign investors and social or civil unrest. These factors may negatively impact the market value of an investment or our ability to dispose it. In addition, an increase in the value of the U.S. dollar relative to non-U.S. currencies could result in a decrease in the U.S. dollar value of assets under management that are denominated in non-U.S. currencies. |
• | The performance of our investment strategies is critical to the maintenance and growth of assets under management. Net flows related to our investment strategies can be affected by investment performance relative to other competing investment strategies or to established benchmarks. Our investment management strategies are rated, ranked or assessed by independent third-parties, distribution partners, and industry periodicals and services. These assessments often influence the investment decisions of our clients. If the performance or assessment of our investment strategies is seen as underperforming relative to peers, it could result in an increase in the withdrawal of assets by existing clients and the inability to attract additional investments from existing and new clients. In addition, certain of our investment strategies have capacity constraints, as there is a limit to the number of securities available for the strategy to operate effectively. In those instances, we may choose to limit access to new or existing investors. In addition, certain mutual funds employ the use of leverage as part of their investment strategies, which will increase or decrease the Company’s assets under management, and the risk associated with the investment, as the proceeds from the use of leverage are invested in accordance with the funds’ investment strategies. |
• | General domestic and global economic and political conditions can influence assets under management. Changes in interest rates, the availability and cost of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, commodity prices, currency exchange rates and controls and national and international political circumstances (including wars, terrorist acts and security operations) and other conditions may impact the equity and credit markets which may influence our assets under management. In recent years, capital and credit markets have experienced substantial volatility. While there has been some recovery in the capital markets employment rates, continued economic weakness and budgetary challenges in the Eurozone, escalating regional turmoil in the Middle East, concern over growth prospects in China and emerging markets, growing debt loads for certain countries and uncertainty about the consequences of governments eventually withdrawing monetary stimulus all indicate that economic and political conditions remain unpredictable. If the security markets decline or experience volatility, our assets under management and our revenues could be negatively impacted. In addition, diminishing investor confidence in the markets and/or adverse market conditions could result in a decrease in investor risk tolerance. Such a decrease could prompt investors to reduce their rate of investment or to fully withdraw from markets, which could lower our overall assets under management and have an adverse effect on our revenues, earnings and growth prospects. |
• | Changes in interest rates can have adverse effects on our assets under management. Increases in interest rates from their historically low present levels may adversely affect the net asset values of our assets under management. Furthermore, increases in interest rates may result in reduced prices in equity markets. Conversely, decreases in interest rates could lead to outflows in fixed income assets that we manage as investors seek higher yields. Any of these effects could lower our assets under management and revenues and, if our revenues decline without a commensurate reduction in our expenses, would lead to a reduction in our net income. |
Item 1B. | Unresolved Staff Comments. |
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. |
Year Ended | Year Ended | ||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Quarter Ended | High | Low | Dividends Declared | High | Low | Dividends Declared | |||||||||||||||||
First Quarter | $ | 171.00 | $ | 126.94 | $ | 0.45 | $ | 208.92 | $ | 169.03 | $ | — | |||||||||||
Second Quarter | $ | 147.77 | $ | 113.47 | $ | 0.45 | $ | 215.72 | $ | 165.00 | $ | 0.45 | |||||||||||
Third Quarter | $ | 134.78 | $ | 97.37 | $ | 0.45 | $ | 227.29 | $ | 166.35 | $ | 0.45 | |||||||||||
Fourth Quarter | $ | 141.97 | $ | 94.52 | $ | 0.45 | $ | 188.04 | $ | 151.81 | $ | 0.45 |
Month | Total number of shares repurchased | Average price paid per share (1) | Total number of shares repurchased as part of publicly announced plans or programs | Maximum number of shares that may yet be repurchased under the plans or programs (2) | ||||||||
October 1—31, 2015 | — | $ | — | — | 1,756,091 | |||||||
November 1—30, 2015 | 156,174 | $ | 129.64 | 156,174 | 1,599,917 | |||||||
December 1—31, 2015 | 114,061 | $ | 129.05 | 114,061 | 1,485,856 | |||||||
Total | 270,235 | 270,235 |
(1) | Average price paid per share is calculated on a settlement basis and excludes commissions. |
(2) | The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and most recently expanded in October 2015. This repurchase program is not subject to an expiration date. |
Item 6. | Selected Financial Data. |
($ in thousands, except per share data) | Years Ended December 31, | ||||||||||||||||||
2015 (1) | 2014 (1) | 2013 (1) | 2012 (2) | 2011 (2) | |||||||||||||||
Results of Operations | |||||||||||||||||||
Revenues | $ | 381,977 | $ | 450,598 | $ | 389,215 | $ | 280,086 | $ | 204,652 | |||||||||
Operating expenses | 301,599 | 319,878 | 275,711 | 219,641 | 190,749 | ||||||||||||||
Operating income | 80,378 | 130,720 | 113,504 | 60,445 | 13,903 | ||||||||||||||
Income tax expense (benefit) (3) | 36,972 | 39,349 | 44,778 | 27,030 | (132,428 | ) | |||||||||||||
Net income (3) | 30,671 | 96,965 | 77,130 | 37,773 | 145,420 | ||||||||||||||
Net income attributable to common stockholders (3) | 35,106 | 97,700 | 75,190 | 37,608 | 111,678 | ||||||||||||||
Earnings per share—basic (3) | 3.99 | 10.75 | 9.18 | 4.87 | 17.98 | ||||||||||||||
Earnings per share—diluted (3) | 3.92 | 10.51 | 8.92 | 4.66 | 16.34 | ||||||||||||||
Cash dividends declared per share | 1.80 | 1.35 | — | — | — | ||||||||||||||
As of December 31, | |||||||||||||||||||
2015 (1) | 2014 (1) | 2013 (2) | 2012 (2) | 2011 (2) | |||||||||||||||
Balance Sheet Data | |||||||||||||||||||
Cash and cash equivalents | $ | 87,574 | $ | 202,847 | $ | 271,014 | $ | 63,432 | $ | 45,267 | |||||||||
Investments | 56,738 | 63,448 | 37,258 | 18,433 | 18,357 | ||||||||||||||
Investments of consolidated sponsored investment products | 323,335 | 236,652 | 139,054 | 43,227 | — | ||||||||||||||
Investments of consolidated investment product | 199,485 | — | — | — | — | ||||||||||||||
Goodwill and other intangible assets, net | 47,588 | 47,043 | 49,893 | 53,971 | 56,891 | ||||||||||||||
Total assets | 859,729 | 698,773 | 644,954 | 332,749 | 286,379 | ||||||||||||||
Accrued compensation and benefits | 49,617 | 54,815 | 53,140 | 41,252 | 31,171 | ||||||||||||||
Debt | — | — | — | 15,000 | 15,000 | ||||||||||||||
Debt of consolidated investment product | 152,597 | — | — | — | — | ||||||||||||||
Total liabilities | 276,408 | 112,350 | 109,900 | 85,115 | 68,007 | ||||||||||||||
Redeemable noncontrolling interests | 73,864 | 23,071 | 42,186 | 3,163 | — | ||||||||||||||
Total equity | 509,457 | 563,352 | 492,868 | 244,471 | 183,155 | ||||||||||||||
As of December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
($ in millions) | |||||||||||||||||||
Assets Under Management | |||||||||||||||||||
Total assets under management | $ | 47,385 | $ | 56,702 | $ | 57,740 | $ | 45,537 | $ | 34,588 |
(1) | Derived from audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K. |
(2) | Derived from audited consolidated financial statements not included in this Annual Report on Form 10-K. |
(3) | The amount shown for the 2014 fiscal year includes a net tax benefit of approximately $15.5 million due to the resolution of uncertain tax positions. The amount shown for the 2011 fiscal year includes a tax benefit of $132.4 million, primarily related to the release of a valuation allowance on certain deferred tax assets. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | Net income per diluted share was $3.92 in 2015 compared to $10.51 in 2014. |
• | Total sales (inflows) were $12.7 billion in 2015 compared to $15.2 billion in 2014. Net outflows were $6.3 billion in 2015 compared to $1.2 billion in 2014. |
• | Assets under management were $47.4 billion at December 31, 2015 compared to $56.7 billion at December 31, 2014. |
As of December 31, | Change | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 vs. 2014 | % | 2014 vs. 2013 | % | |||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||
Fund assets | |||||||||||||||||||||||||
Open-end funds (1) | $ | 28,882.1 | $ | 37,514.2 | $ | 37,679.5 | $ | (8,632.1 | ) | (23.0 | )% | $ | (165.3 | ) | (0.4 | )% | |||||||||
Closed-end funds | 6,222.3 | 7,581.4 | 6,499.6 | (1,359.1 | ) | (17.9 | )% | 1,081.8 | 16.6 | % | |||||||||||||||
Exchange traded funds | 340.8 | — | — | 340.8 | 100.0 | % | — | — | % | ||||||||||||||||
Money market funds (2) | — | — | 1,556.6 | — | — | % | (1,556.6 | ) | (100.0 | )% | |||||||||||||||
Total fund assets | 35,445.2 | 45,095.6 | 45,735.7 | (9,650.4 | ) | (21.4 | )% | (640.1 | ) | (1.4 | )% | ||||||||||||||
Separately managed accounts (3) | 6,784.4 | 6,884.8 | 7,433.1 | (100.4 | ) | (1.5 | )% | (548.3 | ) | (7.4 | )% | ||||||||||||||
Total retail assets | 42,229.6 | 51,980.4 | 53,168.8 | (9,750.8 | ) | (18.8 | )% | (1,188.4 | ) | (2.2 | )% | ||||||||||||||
Total institutional accounts (3) | 5,155.7 | 4,722.0 | 4,570.8 | 433.7 | 9.2 | % | 151.2 | 3.3 | % | ||||||||||||||||
Total Assets Under Management | $ | 47,385.3 | $ | 56,702.4 | $ | 57,739.6 | $ | (9,317.1 | ) | (16.4 | )% | $ | (1,037.2 | ) | (1.8 | )% | |||||||||
Average Assets Under Management | $ | 52,310.5 | $ | 59,122.1 | $ | 52,975.8 | $ | (6,811.6 | ) | (11.5 | )% | $ | 6,146.3 | 11.6 | % |
(1) | Includes assets under management of open-end mutual funds, UCITS and variable insurance funds. |
(2) | On October 20, 2014, our money market funds were liquidated. |
(3) | Includes assets under management related to option strategies. |
($ in millions) | December 31, | ||||||||||
2015 | 2014 | 2013 | |||||||||
Open-End Funds (1) | |||||||||||
Beginning balance | $ | 37,514.2 | $ | 37,679.5 | $ | 27,122.8 | |||||
Inflows | 10,046.8 | 12,733.7 | 19,146.3 | ||||||||
Outflows | (17,010.5 | ) | (13,428.1 | ) | (11,237.1 | ) | |||||
Net flows | (6,963.7 | ) | (694.4 | ) | 7,909.2 | ||||||
Market performance | (1,511.5 | ) | 1,297.2 | 2,337.9 | |||||||
Other (2) | (156.9 | ) | (768.1 | ) | 309.6 | ||||||
Ending balance | $ | 28,882.1 | $ | 37,514.2 | $ | 37,679.5 | |||||
Closed-End Funds | |||||||||||
Beginning balance | $ | 7,581.4 | $ | 6,499.6 | $ | 6,231.6 | |||||
Inflows | — | 493.8 | — | ||||||||
Outflows | — | — | — | ||||||||
Net flows | — | 493.8 | — | ||||||||
Market performance | (811.9 | ) | 799.3 | 728.2 | |||||||
Other (2) | (547.2 | ) | (211.3 | ) | (460.2 | ) | |||||
Ending balance | $ | 6,222.3 | $ | 7,581.4 | $ | 6,499.6 | |||||
Exchange Traded Funds | |||||||||||
Beginning balance | $ | — | $ | — | $ | — | |||||
Inflows | 342.8 | — | — | ||||||||
Outflows | (49.0 | ) | — | — | |||||||
Net flows | 293.8 | — | — | ||||||||
Market performance | (27.9 | ) | — | — | |||||||
Other (2) | 74.9 | — | — | ||||||||
Ending balance | $ | 340.8 | $ | — | $ | — | |||||
Money Market Funds | |||||||||||
Beginning balance | $ | — | $ | 1,556.6 | $ | 1,994.1 | |||||
Other (2) | — | (1,556.6 | ) | (437.5 | ) | ||||||
Ending balance | $ | — | $ | — | $ | 1,556.6 | |||||
Separately Managed Accounts (3) | |||||||||||
Beginning balance | $ | 6,884.8 | $ | 7,433.1 | $ | 5,829.0 | |||||
Inflows | 1,291.9 | 1,333.6 | 1,384.0 | ||||||||
Outflows | (1,428.6 | ) | (2,244.8 | ) | (1,225.9 | ) | |||||
Net flows | (136.7 | ) | (911.2 | ) | 158.1 | ||||||
Market performance | 70.7 | 355.5 | 1,481.4 | ||||||||
Other (2) | (34.4 | ) | 7.4 | (35.4 | ) | ||||||
Ending balance | $ | 6,784.4 | $ | 6,884.8 | $ | 7,433.1 | |||||
Institutional Accounts (3) | |||||||||||
Beginning balance | $ | 4,722.0 | $ | 4,570.8 | $ | 4,359.5 | |||||
Inflows | 1,008.3 | 650.5 | 796.3 | ||||||||
Outflows | (526.1 | ) | (743.0 | ) | (782.1 | ) | |||||
Net flows | 482.2 | (92.5 | ) | 14.2 | |||||||
Market performance | 46.2 | 389.2 | 314.7 | ||||||||
Other (2) | (94.7 | ) | (145.5 | ) | (117.6 | ) | |||||
Ending balance | $ | 5,155.7 | $ | 4,722.0 | $ | 4,570.8 | |||||
Total | |||||||||||
Beginning balance | $ | 56,702.4 | $ | 57,739.6 | $ | 45,537.0 | |||||
Inflows | 12,689.8 | 15,211.6 | 21,326.6 | ||||||||
Outflows | (19,014.2 | ) | (16,415.9 | ) | (13,245.1 | ) | |||||
Net flows | (6,324.4 | ) | (1,204.3 | ) | 8,081.5 | ||||||
Market performance | (2,234.4 | ) | 2,841.2 | 4,862.2 | |||||||
Other (2) | (758.3 | ) | (2,674.1 | ) | (741.1 | ) | |||||
Ending balance | $ | 47,385.3 | $ | 56,702.4 | $ | 57,739.6 |
(1) | Includes assets under management of open-end mutual funds, UCITS and variable insurance funds. |
(2) | Represents dividends distributed, net of reinvestments, net flows of cash management strategies, net flows and market performance on structured products, which are a component of institutional accounts, and net flows from non-sales related activities such as asset acquisitions/(dispositions), marketable securities investments/(withdrawals) and the impact on assets from the use of leverage. |
December 31, | Change | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 vs. 2014 | % | 2014 vs. 2013 | % | |||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||||
Equity | $ | 28,314.9 | $ | 34,180.7 | $ | 33,610.7 | $ | (5,865.8 | ) | (17.2 | )% | $ | 570.0 | 1.7 | % | ||||||||||
Fixed income | 15,115.6 | 16,681.6 | 15,829.4 | (1,566.0 | ) | (9.4 | )% | 852.2 | 5.4 | % | |||||||||||||||
Alternatives (1) | 3,468.7 | 5,372.4 | 5,308.3 | (1,903.7 | ) | (35.4 | )% | 64.1 | 1.2 | % | |||||||||||||||
Other (2) | 486.1 | 467.7 | 2,991.2 | 18.4 | 3.9 | % | (2,523.5 | ) | (84.4 | )% | |||||||||||||||
Total | $ | 47,385.3 | $ | 56,702.4 | $ | 57,739.6 | $ | (9,317.1 | ) | (16.4 | )% | $ | (1,037.2 | ) | (1.8 | )% |
(1) | Consists of long/short equity, real estate securities, master-limited partnerships and other. |
(2) | Consists of option strategies and cash management; at December 31, 2013, cash management strategies, which were liquidated in 2014, were $1,587.6 million. |
December 31, | ||||||||||||||||||||
Average Fee Earned (expressed in basis points) | Average Assets Under Management ($ in millions) | |||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||
Products | ||||||||||||||||||||
Open-End Funds (1) | 48.2 | 51.3 | 51.1 | $ | 33,290.1 | $ | 39,620.3 | $ | 33,821.0 | |||||||||||
Closed-End Funds | 66.7 | 65.6 | 61.6 | 6,946.3 | 7,112.9 | 6,476.0 | ||||||||||||||
Exchange Traded Funds | 23.6 | — | — | 179.3 | — | — | ||||||||||||||
Money Market Funds | — | — | 1.6 | — | 1,060.1 | 1,700.7 | ||||||||||||||
Separately Managed Accounts (2) | 54.1 | 51.9 | 48.7 | 6,863.8 | 6,774.2 | 6,471.4 | ||||||||||||||
Institutional Accounts (2) | 34.9 | 35.5 | 33.7 | 5,031.0 | 4,554.6 | 4,506.7 | ||||||||||||||
All Products | 50.1 | 50.9 | 49.2 | $ | 52,310.5 | $ | 59,122.1 | $ | 52,975.8 |
(1) | Includes assets under management of open-end mutual funds, UCITS and variable insurance funds. |
(2) | Includes assets under management related to options strategies. |
Years Ended December 31, | Change | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 vs. 2014 | % | 2014 vs. 2013 | % | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Investment management fees | $ | 264,865 | $ | 300,663 | $ | 260,557 | $ | (35,798 | ) | (11.9 | )% | $ | 40,106 | 15.4 | % | ||||||||||
Other revenue | 117,112 | 149,935 | 128,658 | (32,823 | ) | (21.9 | )% | 21,277 | 16.5 | % | |||||||||||||||
Total revenues | 381,977 | 450,598 | 389,215 | (68,621 | ) | (15.2 | )% | 61,383 | 15.8 | % | |||||||||||||||
Total operating expenses | 301,599 | 319,878 | 275,711 | (18,279 | ) | (5.7 | )% | 44,167 | 16.0 | % | |||||||||||||||
Operating income | 80,378 | 130,720 | 113,504 | (50,342 | ) | (38.5 | )% | 17,216 | 15.2 | % | |||||||||||||||
Other (expense) income, net | (26,650 | ) | (2,843 | ) | 5,939 | (23,807 | ) | 837.4 | % | (8,782 | ) | (147.9 | )% | ||||||||||||
Interest income, net | 13,915 | 8,437 | 2,465 | 5,478 | 64.9 | % | 5,972 | 242.3 | % | ||||||||||||||||
Income before income taxes | 67,643 | 136,314 | 121,908 | (68,671 | ) | (50.4 | )% | 14,406 | 11.8 | % | |||||||||||||||
Income tax expense | 36,972 | 39,349 | 44,778 | (2,377 | ) | (6.0 | )% | (5,429 | ) | (12.1 | )% | ||||||||||||||
Net income | 30,671 | 96,965 | 77,130 | (66,294 | ) | (68.4 | )% | 19,835 | 25.7 | % | |||||||||||||||
Noncontrolling interests | 4,435 | 735 | (1,940 | ) | 3,700 | 503.4 | % | 2,675 | (137.9 | )% | |||||||||||||||
Net income attributable to common stockholders | $ | 35,106 | $ | 97,700 | $ | 75,190 | $ | (62,594 | ) | (64.1 | )% | $ | 22,510 | 29.9 | % | ||||||||||
Earnings per share - diluted | $ | 3.92 | $ | 10.51 | $ | 8.92 | $ | (6.59 | ) | (62.7 | )% | $ | 1.59 | 17.8 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | 2013 | 2015 vs 2014 | % | 2014 vs 2013 | % | ||||||||||||||||||
Investment management fees | |||||||||||||||||||||||||
Funds | $ | 209,994 | $ | 249,348 | $ | 213,863 | $ | (39,354 | ) | (15.8 | )% | $ | 35,485 | 16.6 | % | ||||||||||
Separately managed accounts | 37,296 | 35,153 | 31,510 | 2,143 | 6.1 | % | 3,643 | 11.6 | % | ||||||||||||||||
Institutional accounts | 17,575 | 16,162 | 15,184 | 1,413 | 8.7 | % | 978 | 6.4 | % | ||||||||||||||||
Total investment management fees | 264,865 | 300,663 | 260,557 | (35,798 | ) | (11.9 | )% | 40,106 | 15.4 | % | |||||||||||||||
Distribution and service fees | 67,066 | 91,950 | 78,965 | (24,884 | ) | (27.1 | )% | 12,985 | 16.4 | % | |||||||||||||||
Administration and transfer agent fees | 48,247 | 56,016 | 48,185 | (7,769 | ) | (13.9 | )% | 7,831 | 16.3 | % | |||||||||||||||
Other income and fees | 1,799 | 1,969 | 1,508 | (170 | ) | (8.6 | )% | 461 | 30.6 | % | |||||||||||||||
Total revenues | $ | 381,977 | $ | 450,598 | $ | 389,215 | $ | (68,621 | ) | (15.2 | )% | $ | 61,383 | 15.8 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 vs 2014 | % | 2014 vs 2013 | % | |||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Employment expenses | $ | 137,095 | $ | 139,809 | $ | 131,768 | $ | (2,714 | ) | (1.9 | )% | $ | 8,041 | 6.1 | % | ||||||||||
Distribution and other asset-based expenses | 89,731 | 123,665 | 97,786 | (33,934 | ) | (27.4 | )% | 25,879 | 26.5 | % | |||||||||||||||
Other operating expenses | 68,035 | 49,569 | 39,119 | 18,466 | 37.3 | % | 10,450 | 26.7 | % | ||||||||||||||||
Restructuring and severance | — | 294 | 203 | (294 | ) | (100.0 | )% | 91 | 44.8 | % | |||||||||||||||
Depreciation and amortization expense | 6,738 | 6,541 | 6,835 | 197 | 3.0 | % | (294 | ) | (4.3 | )% | |||||||||||||||
Total operating expenses | $ | 301,599 | $ | 319,878 | $ | 275,711 | $ | (18,279 | ) | (5.7 | )% | $ | 44,167 | 16.0 | % |
December 31, | Change | ||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | 2013 | 2015 vs. 2014 | % | 2014 vs. 2013 | % | ||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 87,574 | $ | 202,847 | $ | 271,014 | $ | (115,273 | ) | (56.8 | )% | $ | (68,167 | ) | (25.2 | )% | |||||||||
Investments | 56,738 | 63,448 | 37,258 | (6,710 | ) | (10.6 | )% | 26,190 | 70.3 | % | |||||||||||||||
Deferred taxes, net | 54,143 | 60,162 | 64,500 | (6,019 | ) | (10.0 | )% | (4,338 | ) | (6.7 | )% | ||||||||||||||
Dividends payable | 4,233 | 4,270 | — | (37 | ) | (0.9 | )% | 4,270 | 100.0 | % | |||||||||||||||
Total equity | 509,457 | 563,352 | 492,868 | (53,895 | ) | (9.6 | )% | 70,484 | 14.3 | % |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash Flow Data | |||||||||||
Provided by (used in) | |||||||||||
Operating activities | $ | (209,430 | ) | $ | (58,871 | ) | $ | 28,837 | |||
Investing activities | (6,438 | ) | (8,181 | ) | (6,231 | ) | |||||
Financing activities | 109,948 | (1,189 | ) | 185,493 |
Payments Due | |||||||||||||||||||
($ in millions) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||
Lease obligations | $ | 22.8 | $ | 4.8 | $ | 12.4 | $ | 4.3 | $ | 1.3 | |||||||||
Credit Facility, including commitment fee (1) | 0.5 | 0.3 | 0.2 | — | — | ||||||||||||||
Financing Facility of consolidated investment product, including interest (2) | 162.7 | 3.6 | 159.1 | — | — | ||||||||||||||
Minimum payments on service contracts (3) | 11.9 | 5.8 | 6.1 | — | — | ||||||||||||||
Total | $ | 197.9 | $ | 14.5 | $ | 177.8 | $ | 4.3 | $ | 1.3 |
(1) | At December 31, 2015, we had no amount outstanding under our Credit Facility which has a variable interest rate. Amounts outstanding under the Credit Facility bear interest at an annual rate equal to, at our option, either LIBOR for interest periods of one, two, three or six months or an alternate base rate, plus, in each case, an applicable margin, that ranges from 0.75% to 2.50%. We are also required to pay an annual commitment fee that ranges from 0.35% to 0.50% on undrawn amounts. Payments due are estimated based on the commitment fee rate of 0.35% in effect on December 31, 2015. |
(2) | At December 31, 2015, $152.6 was outstanding under the Financing Facility of the consolidated investment product. The Financing Facility is secured by all the assets of the SPE and initially bears interest at a rate of three-month LIBOR plus 1.25% per annum (with such interest rate, upon completion of the initial nine-month ramp-up period, increasing to three-month LIBOR plus 2.0% per annum). |
(3) | Service contracts include contractual amounts that will be due to purchase goods and services to be used in our operations and may be canceled at earlier times than those indicated under certain conditions that may include termination fees. |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 8. | Financial Statements and Supplementary Data. |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
Item 10. | Directors, Executive Officers and Corporate Governance. |
Item 11. | Executive Compensation. |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) (1) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)(c) | ||||||
Equity compensation plans approved by security holders (2) | 348,253 | $ | 18.78 | 322,986 | |||||
Equity compensation plans not approved by security holders | — | — | — | ||||||
Total | 348,253 | $ | 18.78 | 322,986 |
(1) | The weighted-average exercise price set forth in this column is calculated excluding outstanding restricted stock unit awards (“RSUs”) since recipients of such awards are not required to pay an exercise price to receive the shares subject to these awards. The weighted-average exercise price of outstanding options, warrants and rights, including RSUs, was $8.45. |
(2) | Represents 156,636 shares of common stock issuable upon the exercise of stock options and 191,617 shares of our common stock issuable upon the vesting of RSUs outstanding under the Company’s Omnibus Incentive and Equity Plan (the “Omnibus Plan”). Of the 1,800,000 maximum number of shares of our common stock authorized for issuance under the Omnibus Plan, 80,639 shares of common stock have been issued on a cumulative basis in the form of direct grants to directors. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accounting Fees and Services. |
Item 15. | Exhibits, Financial Statement Schedules. |
(a)(1) | Financial Statements: The following Report of Independent Registered Public Accounting Firm and Consolidated Financial Statements of Virtus are included in this Annual Report: | |
Report of Independent Registered Public Accounting Firm | ||
Consolidated Balance Sheets as of December 31, 2015 and 2014 | ||
Consolidated Statements of Operations for the Years Ended December 31, 2015, 2014 and 2013 | ||
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2015, 2014 and 2013 | ||
Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended December 31, 2015, 2014 and 2013 | ||
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013 | ||
Notes to Consolidated Financial Statements | ||
(a)(2) | Financial Statement Schedules: |
(a)(3) | Exhibits: |
Exhibit Number | Exhibit Description | |
(2) | Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession | |
2.1 | Separation Agreement, Plan of Reorganization and Distribution by and between The Phoenix Companies, Inc. and the Registrant, dated as of December 18, 2008 (incorporated by reference to Exhibit 2.1 of the Registrant’s Amendment No. 4 to Form 10, filed December 19, 2008). | |
(3) | Articles of Incorporation and Bylaws | |
3.1 | Amended and Restated Certificate of Incorporation of the Registrant, dated December 18, 2008 (incorporated by reference to Exhibit 3.1 of the Registrant’s Amendment No. 4 to Form 10, filed December 19, 2008). | |
3.2 | Amended and Restated Bylaws of the Registrant, as adopted on January 28, 2010 (incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K, filed February 2, 2010). | |
3.3 | Certificate of Designations of Series A Non-Voting Convertible Preferred Stock and Series B Voting Convertible Preferred Stock of the Registrant, dated October 31, 2008 (incorporated by reference to Exhibit 4.2 of the Registrant’s Amendment No. 2 to Form 10, filed November 14, 2008). | |
3.4 | Certificate of Amendment of the Certificate of Designations of Series A Non-Voting Convertible Preferred Stock and Series B Voting Convertible Preferred Stock of the Registrant (incorporated by reference to Exhibit 3.1 of the Registrant’s Quarterly Report on Form 10-Q, filed August 13, 2009). | |
3.5 | Certificate of Designations of Series C Junior Participating Preferred Stock of the Registrant, dated December 29, 2008 (incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K, filed January 2, 2009). | |
(4) | Instruments Defining the Rights of Security Holders, Including Indentures | |
4.1 | Note in favor of The Bank of New York Mellon as Lender, dated September 1, 2009 (incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K, filed September 4, 2009). | |
4.2 | Note in favor of PNC Bank, National Association as Lender, dated September 1, 2009 (incorporated by reference to Exhibit 4.2 of the Registrant’s Current Report on Form 8-K, filed September 4, 2009). | |
(10) | Material Contracts | |
10.1 | Transition Services Agreement by and between The Phoenix Companies, Inc. and the Registrant, dated as of December 18, 2008 (incorporated by reference to Exhibit 10.1 of the Registrant’s Amendment No. 4 to Form 10, filed December 19, 2008). | |
10.2 | Tax Separation Agreement by and between The Phoenix Companies, Inc. and the Registrant, dated December 18, 2008 (incorporated by reference to Exhibit 10.2 of the Registrant’s Amendment No. 4 to Form 10, filed December 19, 2008). | |
10.3 | Amendment to Tax Separation Agreement, dated April 8, 2009, by and between The Phoenix Companies, Inc. and the Registrant, dated as of December 18, 2008 (incorporated by reference to Exhibit 10.15 of the Registrant’s Annual Report on Form 10-K, filed April 10, 2009). | |
10.4 | Employee Matters Agreement by and between The Phoenix Companies, Inc. and the Registrant, dated December 18, 2008 (incorporated by reference to Exhibit 10.3 of the Registrant’s Amendment No. 4 to Form 10, filed December 19, 2008). |
*10.5 | Change in Control Agreement between George R. Aylward and the Registrant, effective as of December 31, 2008 (incorporated by reference to Exhibit 10.4 of the Registrant’s Amendment No. 4 to Form 10, filed December 19, 2008). | |
*10.6 | Amended and Restated Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan, effective as of January 1, 2014 (incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K, filed May 16, 2014). | |
*10.7 | Virtus Investment Partners, Inc. Non-Qualified Excess Investment Plan, effective as of November 1, 2008 (incorporated by reference to Exhibit 10.6 of the Registrant’s Amendment No. 2 to Form 10, filed November 14, 2008). | |
*10.8 | First Amendment to the Virtus Investment Partners, Inc. Non-Qualified Excess Investment Plan, effective as of February 1, 2010 (incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q, filed May 4, 2010). | |
*10.9 | Virtus Investment Partners, Inc. Amended and Restated Executive Severance Allowance Plan, effective as of February 2, 2009 (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed February 4, 2009). | |
10.10 | Investment and Contribution Agreement by and among Phoenix Investment Management Company, the Registrant, Harris Bankcorp, Inc. and The Phoenix Companies, Inc., dated as of October 30, 2008 (incorporated by reference to Exhibit 10.8 of the Registrant’s Amendment No. 2 to Form 10, filed November 14, 2008). | |
10.11 | Annex A to the Investment and Contribution Agreement by and among Phoenix Investment Management Company, the Registrant, Harris Bankcorp, Inc. and The Phoenix Companies, Inc., dated October 30, 2008 (incorporated by reference to Exhibit 10.10 of the Registrant’s Annual Report on Form 10-K, filed March 1, 2011). | |
10.12 | Transaction Agreement by and among Harris Investment Management, Inc., Phoenix Investment Counsel, Inc., Harris Financial Corp. and Phoenix Investment Partners, LTD., dated as of March 28, 2006 (incorporated by reference Exhibit 6.01 of the Schedule 13D, filed January 12, 2009 by Bank of Montreal, Harris Financial Corp. and Harris Bankcorp, Inc.). | |
10.13 | Strategic Partnership Agreement by and between Harris Investment Management, Inc. and Phoenix Investment Counsel, Inc., dated as of March 28, 2006 (incorporated by reference to Exhibit 6.02 of the Schedule 13D, filed January 12, 2009 by Bank of Montreal, Harris Financial Corp. and Harris Bankcorp, Inc.). | |
*10.14 | Form of Non-Qualified Stock Option Agreement under the Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan (incorporated by reference to Exhibit 10.4 of the Registrant’s Quarterly Report on Form 10-Q, filed May 13, 2009). | |
*10.15 | Form of Restricted Stock Units Agreement under the Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan (incorporated by reference to Exhibit 10.5 of the Registrant’s Quarterly Report on Form 10-Q, filed May 13, 2009). | |
*10.16 | Form of Performance Share Units Agreement under the Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan (incorporated by reference to Exhibit 10.30 of the Registrant’s Quarterly Report on Form 10-Q, filed August 5, 2011). | |
10.17 | Amended and Restated Credit Agreement, dated as of September 10, 2012 among the Registrant, as Borrower, the lenders party thereto, PNC Bank, National Association, as Syndication Agent, and The Bank of New York Mellon, as Administrative Agent, as Swingline Lender and as Issuing Bank (the “Credit Agreement”) (incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q, filed November 7, 2012). |
10.18 | Amendment No. 1, dated as of July 2, 2013, to the Credit Agreement, dated as of September 10, 2012, among the Registrant, as Borrower, the lenders party thereto, PNC Bank, National Association, as Syndication Agent, and The Bank of New York Mellon, as Administrative Agent, as Swingline Lender and as Issuing Bank (incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q, filed August 2, 2013). | |
10.19 | Amendment No. 2, dated as of September 18, 2013, to the Credit Agreement, dated as of September 10, 2012, among the Registrant, as Borrower, the lenders party thereto, PNC Bank, National Association, as Syndication Agent, and The Bank of New York Mellon, as Administrative Agent, as Swingline Lender and as Issuing Bank (incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q, filed November 4, 2013). | |
10.20 | Guarantee Agreement among the Registrant, each of the subsidiary guarantors party thereto and The Bank of New York Mellon, as Administrative Agent, dated as of September 1, 2009 (incorporated by reference to Exhibit 10.24 of the Registrant’s Annual Report on Form 10-K, filed March 1, 2011). | |
10.21 | Reaffirmation of Guarantee among the Registrant as Borrower, each of the subsidiary guarantors party thereto and the Bank of New York Mellon, as Administrative Agent, as Swingline Lender and as Issuing Bank under the Credit Agreement (incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q, filed November 7, 2012). | |
10.22 | Security Agreement among the Registrant, each of the other grantors party thereto and The Bank of New York Mellon, as Administrative Agent, dated as of September 1, 2009 (incorporated by reference to Exhibit 10.25 of the Registrant’s Annual Report on Form 10-K, filed March 1, 2011). | |
10.23 | Amendment No. 1, dated as of September 10, 2012, to the Security Agreement, dated as of September 1, 2009, among the Registrant, as Borrower, each of the subsidiary guarantors party thereto, and the Bank of New York Mellon, as Administrative Agent under the Credit Agreement (incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q, filed November 7, 2012). | |
*10.24 | Form of Indemnity Agreement (incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q, filed November 4, 2009). | |
*10.25 | Offer Letter from the Registrant to Jeffrey T. Cerutti dated May 18, 2010 (incorporated by reference to Exhibit 10.27 of the Registrant’s Annual Report on Form 10-K, filed March 1, 2011). | |
10.26 | Conversion and Voting Agreement, dated as of October 27, 2011, between BMO, Inc. (f/k/a Harris Bankcorp, Inc.) and the Registrant (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed November 2, 2011). | |
*10.27 | Offer Letter from the Registrant to Mark S. Flynn dated December 9, 2010 (incorporated by reference to Exhibit 10.31 of the Registrant’s Annual Report on Form 10-K, filed March 1, 2012). | |
10.28 | Amendment No. 3 dated as of December 4, 2013 to the Credit Agreement, dated as of September 10, 2012, among the Registrant, as Borrower, the lenders party thereto, PNC Bank, National Association, as Syndication Agent, and The Bank of New York Mellon, as Administrative Agent, as Swingline Lender and as Issuing Bank (incorporated by reference to Exhibit 10.29 of the Registrant’s Annual Report on Form 10-K, filed February 24, 2014). | |
10.29 | Amendment No. 2, dated as of December 4, 2013, to the Security Agreement, dated as of September 1, 2009, among the Registrant, as Borrower, each of the subsidiary guarantors party thereto, and the Bank of New York Mellon, as Administrative Agent under the Credit Agreement (incorporated by reference to Exhibit 10.30 of the Registrant’s Annual Report on Form 10-K, filed February 24, 2014). | |
10.30 | Amendment No. 4, dated as of August 12, 2015, to the Credit Agreement, dated as of September 10, 2012, among the Registrant, as Borrower, the lenders party thereto, PNC Bank National Association, as syndication agent, and the Bank of New York Mellon, as Administrative Agent, the Swingline Lender, and as Issuing Bank (incorporated by reference to Exhibit 10.1 of the Registrant's Quarterly Report on Form 10-Q, filed October 30, 2015). | |
(21) | Subsidiaries of the Registrant | |
21.1 | Virtus Investment Partners, Inc., Subsidiaries List. |
(23) | Consents of Experts and Counsel | |
23.1 | Consent of Independent Registered Public Accounting Firm. | |
31.1 | Certifications of Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certifications of Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certifications of Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | The following information formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014, (ii) Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013, (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013, (v) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2015, 2014 and 2013 and (iv) Notes to Consolidated Financial Statements. |
* | Management contract, compensatory plan or arrangement. |
Virtus Investment Partners, Inc. | ||
By: | /S/ MICHAEL A. ANGERTHAL | |
Michael A. Angerthal | ||
Executive Vice President Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
/S/ MARK C. TREANOR | /S/ GEORGE R. AYLWARD | |
Mark C. Treanor Director and Non-Executive Chairman | George R. Aylward President, Chief Executive Officer and Director (Principal Executive Officer) | |
/S/ JAMES R. BAIO | /S/ DIANE M. COFFEY | |
James R. Baio Director | Diane M. Coffey Director | |
/S/ SUSAN S. FLEMING | /S/ TIMOTHY A. HOLT | |
Susan S. Fleming Director | Timothy A. Holt Director | |
/S/ MELODY L. JONES | /S/ RUSSEL C. ROBERTSON | |
Melody L. Jones Director | Russel C. Robertson Director | |
/S/ EDWARD M. SWAN, JR. | /S/ STEPHEN T. ZARRILLI | |
Edward M. Swan, Jr. Director | Stephen T. Zarrilli Director | |
/S/ MICHAEL A. ANGERTHAL | ||
Michael A. Angerthal Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
Page | ||
Audited Consolidated Financial Statements | ||
December 31, 2015 | December 31, 2014 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 87,574 | $ | 202,847 | ||||
Investments | 56,738 | 63,448 | ||||||
Accounts receivable, net | 38,757 | 49,721 | ||||||
Assets of consolidated sponsored investment products | ||||||||
Cash of consolidated sponsored investment products | 1,513 | 457 | ||||||
Cash pledged or on deposit of consolidated sponsored investment products | 10,353 | 8,230 | ||||||
Investments of consolidated sponsored investment products | 323,335 | 236,652 | ||||||
Other assets of consolidated sponsored investment products | 8,549 | 6,960 | ||||||
Assets of consolidated investment product | ||||||||
Cash equivalents of consolidated investment product | 8,297 | — | ||||||
Investments of consolidated investment product | 199,485 | — | ||||||
Other assets of consolidated investment product | 1,467 | — | ||||||
Furniture, equipment, and leasehold improvements, net | 9,116 | 7,193 | ||||||
Intangible assets, net | 40,887 | 41,783 | ||||||
Goodwill | 6,701 | 5,260 | ||||||
Deferred taxes, net | 54,143 | 60,162 | ||||||
Other assets | 12,814 | 16,060 | ||||||
Total assets | $ | 859,729 | $ | 698,773 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Accrued compensation and benefits | $ | 49,617 | $ | 54,815 | ||||
Accounts payable and accrued liabilities | 23,036 | 31,627 | ||||||
Dividends payable | 4,233 | 4,270 | ||||||
Other liabilities | 13,051 | 9,082 | ||||||
Liabilities of consolidated sponsored investment products | 15,387 | 12,556 | ||||||
Liabilities of consolidated investment product | ||||||||
Debt of consolidated investment product | 152,597 | — | ||||||
Securities purchased payable and other liabilities of consolidated investment product | 18,487 | — | ||||||
Total liabilities | 276,408 | 112,350 | ||||||
Commitments and Contingencies (Note 10) | ||||||||
Redeemable noncontrolling interests | 73,864 | 23,071 | ||||||
Equity: | ||||||||
Equity attributable to stockholders: | ||||||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 9,613,088 shares issued and 8,398,944 shares outstanding at December 31, 2015 and 9,551,274 shares issued and 8,975,833 shares outstanding at December 31, 2014 | 96 | 96 | ||||||
Additional paid-in capital | 1,140,875 | 1,148,908 | ||||||
Accumulated deficit | (472,614 | ) | (507,521 | ) | ||||
Accumulated other comprehensive loss | (1,034 | ) | (242 | ) | ||||
Treasury stock, at cost, 1,214,144 and 575,441 shares at December 31, 2015 and December 31, 2014, respectively | (157,699 | ) | (77,699 | ) | ||||
Total equity attributable to stockholders | 509,624 | 563,542 | ||||||
Noncontrolling interests | (167 | ) | (190 | ) | ||||
Total equity | 509,457 | 563,352 | ||||||
Total liabilities and equity | $ | 859,729 | $ | 698,773 |
Years Ended December 31, | |||||||||||
($ in thousands, except per share data) | 2015 | 2014 | 2013 | ||||||||
Revenues | |||||||||||
Investment management fees | $ | 264,865 | $ | 300,663 | $ | 260,557 | |||||
Distribution and service fees | 67,066 | 91,950 | 78,965 | ||||||||
Administration and transfer agent fees | 48,247 | 56,016 | 48,185 | ||||||||
Other income and fees | 1,799 | 1,969 | 1,508 | ||||||||
Total revenues | 381,977 | 450,598 | 389,215 | ||||||||
Operating Expenses | |||||||||||
Employment expenses | 137,095 | 139,809 | 131,768 | ||||||||
Distribution and other asset-based expenses | 89,731 | 123,665 | 97,786 | ||||||||
Other operating expenses | 63,901 | 46,531 | 38,321 | ||||||||
Other operating expenses of consolidated sponsored investment products | 4,134 | 3,038 | 798 | ||||||||
Restructuring and severance | — | 294 | 203 | ||||||||
Depreciation and other amortization | 3,443 | 2,763 | 2,422 | ||||||||
Amortization expense | 3,295 | 3,778 | 4,413 | ||||||||
Total operating expenses | 301,599 | 319,878 | 275,711 | ||||||||
Operating Income | 80,378 | 130,720 | 113,504 | ||||||||
Other Income (Expense) | |||||||||||
Realized and unrealized (loss) gain on investments, net | (862 | ) | 914 | 2,350 | |||||||
Realized and unrealized (loss) gain on investments of consolidated sponsored investment products, net | (23,181 | ) | (4,648 | ) | 3,515 | ||||||
Realized and unrealized loss on investments of consolidated investment product, net | (3,505 | ) | — | — | |||||||
Other income, net | 898 | 891 | 74 | ||||||||
Total other (expense) income, net | (26,650 | ) | (2,843 | ) | 5,939 | ||||||
Interest Income (Expense) | |||||||||||
Interest expense | (523 | ) | (537 | ) | (782 | ) | |||||
Interest and dividend income | 1,261 | 1,706 | 664 | ||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 11,504 | 7,268 | 2,583 | ||||||||
Interest income of investments of consolidated investment product, net | 1,673 | — | — | ||||||||
Total interest income, net | 13,915 | 8,437 | 2,465 | ||||||||
Income Before Income Taxes | 67,643 | 136,314 | 121,908 | ||||||||
Income tax expense | 36,972 | 39,349 | 44,778 | ||||||||
Net Income | 30,671 | 96,965 | 77,130 | ||||||||
Noncontrolling interests | 4,435 | 735 | (1,940 | ) | |||||||
Net Income Attributable to Common Stockholders | $ | 35,106 | $ | 97,700 | 75,190 | ||||||
Earnings per Share-Basic | $ | 3.99 | $ | 10.75 | 9.18 | ||||||
Earnings per Share-Diluted | $ | 3.92 | $ | 10.51 | 8.92 | ||||||
Cash Dividends Declared per Share | $ | 1.80 | $ | 1.35 | — | ||||||
Weighted Average Shares Outstanding-Basic (in thousands) | 8,797 | 9,091 | 8,188 | ||||||||
Weighted Average Shares Outstanding-Diluted (in thousands) | 8,960 | 9,292 | 8,433 |
Years Ended December 31, | |||||||||||
($ in thousands) | 2015 | 2014 | 2013 | ||||||||
Net Income | $ | 30,671 | $ | 96,965 | $ | 77,130 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustment, net of tax of $266, $132 and ($50) for the years ended December 31, 2015, 2014 and 2013, respectively | (434 | ) | (216 | ) | 81 | ||||||
Unrealized (loss) gain on available-for-sale securities, net of tax of $71, ($76), and $223 for the years ended December 31, 2015, 2014 and 2013, respectively | (358 | ) | 124 | 56 | |||||||
Other comprehensive (loss) income | (792 | ) | (92 | ) | 137 | ||||||
Comprehensive income | 29,879 | 96,873 | 77,267 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 4,435 | 735 | (1,940 | ) | |||||||
Comprehensive income attributable to common stockholders | $ | 34,314 | $ | 97,608 | $ | 75,327 |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Attributed To Shareholders | Non- controlling Interest | Total Equity | Redeemable Non- controlling Interest | |||||||||||||||||||||||||||||||||
($ in thousands) | Shares | Par Value | Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balances at December 31, 2012 | 7,826,674 | $ | 81 | $ | 942,825 | $ | (680,411 | ) | $ | (287 | ) | 245,000 | $ | (17,734 | ) | $ | 244,474 | $ | (3 | ) | $ | 244,471 | $ | 3,163 | |||||||||||||||||
Net income (loss) | — | — | — | 75,190 | — | — | — | 75,190 | (59 | ) | 75,131 | 1,999 | |||||||||||||||||||||||||||||
Net unrealized gain on securities available-for-sale | — | — | — | — | 56 | — | — | 56 | — | 56 | — | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 81 | — | — | 81 | — | 81 | — | ||||||||||||||||||||||||||||||
Activity of noncontrolling interests, net | — | — | — | — | — | — | — | — | — | — | 37,024 | ||||||||||||||||||||||||||||||
Issuance of common stock, net | 1,298,386 | 13 | 191,565 | — | — | — | — | 191,578 | — | 191,578 | — | ||||||||||||||||||||||||||||||
Repurchase of common shares | (105,000 | ) | — | — | — | — | 105,000 | (19,704 | ) | (19,704 | ) | — | (19,704 | ) | — | ||||||||||||||||||||||||||
Issuance of common stock related to employee stock transactions | 85,461 | 1 | 632 | — | — | — | — | 633 | — | 633 | — | ||||||||||||||||||||||||||||||
Taxes paid on stock-based compensation | — | — | (7,513 | ) | — | — | — | — | (7,513 | ) | — | (7,513 | ) | — | |||||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | — | — | 478 | — | — | — | — | 478 | — | 478 | — | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 7,657 | — | — | — | — | 7,657 | — | 7,657 | — | ||||||||||||||||||||||||||||||
Balances at December 31, 2013 | 9,105,521 | 95 | 1,135,644 | (605,221 | ) | (150 | ) | 350,000 | (37,438 | ) | 492,930 | (62 | ) | 492,868 | 42,186 | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | 97,700 | — | — | — | 97,700 | (128 | ) | 97,572 | (607 | ) | ||||||||||||||||||||||||||||
Net unrealized gain on securities available-for-sale | — | — | — | — | 124 | — | — | 124 | — | 124 | — | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (216 | ) | — | — | (216 | ) | — | (216 | ) | — | |||||||||||||||||||||||||||
Activity of noncontrolling interests, net | — | — | — | — | — | — | — | — | — | — | (18,508 | ) | |||||||||||||||||||||||||||||
Cash dividends declared ($1.35 per common share) | — | — | (12,451 | ) | — | — | — | — | (12,451 | ) | — | (12,451 | ) | — | |||||||||||||||||||||||||||
Repurchase of common shares | (225,441 | ) | — | — | — | — | 225,441 | (40,261 | ) | (40,261 | ) | — | (40,261 | ) | — | ||||||||||||||||||||||||||
Issuance of common stock related to employee stock transactions | 95,753 | 1 | 1,416 | — | — | — | — | 1,417 | — | 1,417 | — | ||||||||||||||||||||||||||||||
Taxes paid on stock-based compensation | — | — | (9,512 | ) | — | — | — | — | (9,512 | ) | — | (9,512 | ) | — | |||||||||||||||||||||||||||
Stock-based compensation | — | — | 9,006 | — | — | — | — | 9,006 | — | 9,006 | — | ||||||||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | — | — | 24,805 | — | — | — | — | 24,805 | — | 24,805 | — | ||||||||||||||||||||||||||||||
Balances at December 31, 2014 | 8,975,833 | 96 | 1,148,908 | (507,521 | ) | (242 | ) | 575,441 | (77,699 | ) | 563,542 | (190 | ) | 563,352 | 23,071 | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | 35,106 | — | — | — | 35,106 | (176 | ) | 34,930 | (4,259 | ) | ||||||||||||||||||||||||||||
Net unrealized loss on securities available-for-sale | — | — | — | — | (358 | ) | — | — | (358 | ) | — | (358 | ) | ||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (434 | ) | — | — | (434 | ) | — | (434 | ) | — | |||||||||||||||||||||||||||
Activity of noncontrolling interests, net | — | — | — | (199 | ) | — | — | — | (199 | ) | 199 | — | 55,052 | ||||||||||||||||||||||||||||
Cash dividends declared ($1.80 per common share) | — | — | (16,009 | ) | — | — | — | — | (16,009 | ) | — | (16,009 | ) | — | |||||||||||||||||||||||||||
Repurchase of common shares | (638,703 | ) | — | — | — | — | 638,703 | (80,000 | ) | (80,000 | ) | — | (80,000 | ) | — | ||||||||||||||||||||||||||
Issuance of common shares related to employee stock transactions | 61,814 | — | 842 | — | — | — | — | 842 | — | 842 | — | ||||||||||||||||||||||||||||||
Taxes paid on stock-based compensation | — | — | (5,080 | ) | — | — | — | — | (5,080 | ) | — | (5,080 | ) | — | |||||||||||||||||||||||||||
Stock-based compensation | — | — | 11,116 | — | — | — | — | 11,116 | — | 11,116 | — | ||||||||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | — | — | 1,098 | — | — | — | — | 1,098 | — | 1,098 | — | ||||||||||||||||||||||||||||||
Balances at December 31, 2015 | 8,398,944 | $ | 96 | $ | 1,140,875 | $ | (472,614 | ) | $ | (1,034 | ) | 1,214,144 | $ | (157,699 | ) | $ | 509,624 | $ | (167 | ) | $ | 509,457 | $ | 73,864 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 30,671 | $ | 96,965 | $ | 77,130 | |||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation expense, intangible asset and other amortization | 6,967 | 6,759 | 7,046 | ||||||||
Stock-based compensation | 11,863 | 9,778 | 7,960 | ||||||||
Excess tax benefit from stock-based compensation | (1,586 | ) | (24,805 | ) | (478 | ) | |||||
Amortization of deferred commissions | 7,924 | 17,907 | 14,453 | ||||||||
Payments of deferred commissions | (3,322 | ) | (13,796 | ) | (18,912 | ) | |||||
Equity in earnings of equity method investments | (879 | ) | (488 | ) | (161 | ) | |||||
Realized and unrealized losses (gains) on trading securities, net | 1,158 | (914 | ) | (2,350 | ) | ||||||
Realized and unrealized losses (gains) on investments of consolidated sponsored investment products, net | 26,532 | 4,671 | (3,515 | ) | |||||||
Realized and unrealized losses on investments of consolidated investment product, net | 3,505 | — | — | ||||||||
Sales (purchases) of trading securities, net | 8,962 | 26,742 | (2,701 | ) | |||||||
Purchases of investments by consolidated sponsored investment products, net | (113,190 | ) | (195,850 | ) | (100,526 | ) | |||||
(Purchases) sales of securities sold short by consolidated sponsored investment products, net | (1,747 | ) | 8,071 | — | |||||||
Purchases of investments by consolidated investment product, net | (186,028 | ) | — | — | |||||||
Deferred taxes, net | 6,356 | 4,394 | 32,596 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Cash pledged or on deposit of consolidated sponsored investment products | (2,604 | ) | (10,785 | ) | — | ||||||
Accounts receivable, net and other assets | 10,620 | (4,157 | ) | (13,416 | ) | ||||||
Other assets of consolidated sponsored investment products | (2,002 | ) | (1,468 | ) | 508 | ||||||
Other assets of consolidated investment product | (426 | ) | — | — | |||||||
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities | (14,795 | ) | 17,754 | 31,051 | |||||||
Liabilities of consolidated sponsored investment products | 2,107 | 351 | 152 | ||||||||
Liabilities of consolidated investment product, net | 484 | — | — | ||||||||
Net cash (used in) provided by operating activities | (209,430 | ) | (58,871 | ) | 28,837 | ||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures | (4,683 | ) | (2,432 | ) | (2,009 | ) | |||||
Change in cash and cash equivalents of consolidated sponsored investment products due to deconsolidation | — | (436 | ) | (662 | ) | ||||||
Asset acquisitions and purchases of other investments | (1,617 | ) | (5,000 | ) | (3,364 | ) | |||||
Cash acquired in business combination | 89 | — | — | ||||||||
Purchases of available-for-sale securities | (227 | ) | (313 | ) | (196 | ) | |||||
Net cash used in investing activities | (6,438 | ) | (8,181 | ) | (6,231 | ) | |||||
Cash Flows from Financing Activities: | |||||||||||
Contingent consideration paid for acquired investment management contracts | — | — | (630 | ) | |||||||
Borrowings of proceeds from short sales by consolidated sponsored investment products | 1,473 | 2,555 | — | ||||||||
Payments on borrowings by consolidated sponsored investment products | (350 | ) | — | — | |||||||
Borrowings of debt of consolidated investment product | 152,597 | — | — | ||||||||
Repurchase of common shares | (80,000 | ) | (40,261 | ) | (19,704 | ) | |||||
Dividends paid | (16,047 | ) | (8,182 | ) | — | ||||||
Proceeds from exercise of stock options | 116 | 753 | 570 | ||||||||
Taxes paid related to net share settlement of restricted stock units | (5,080 | ) | (9,512 | ) | (7,513 | ) | |||||
Proceeds from issuance of common stock, net of issuance costs | — | — | 191,771 | ||||||||
Excess tax benefits from stock-based compensation | 1,586 | 24,805 | 478 |
Payment of debt and deferred financing costs | (47 | ) | — | (15,026 | ) | ||||||
Contributions of noncontrolling interests, net | 55,700 | 28,653 | 35,547 | ||||||||
Net cash provided by (used in) financing activities | 109,948 | (1,189 | ) | 185,493 | |||||||
Net (decrease) increase in cash and cash equivalents | (105,920 | ) | (68,241 | ) | 208,099 | ||||||
Cash and cash equivalents, beginning of year | 203,304 | 271,545 | 63,446 | ||||||||
Cash and Cash Equivalents, end of year | $ | 97,384 | $ | 203,304 | $ | 271,545 | |||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Interest paid | $ | 266 | $ | 266 | $ | 393 | |||||
Income taxes paid, net | $ | 31,850 | $ | 23,274 | $ | 1,697 | |||||
Supplemental Disclosure of Non-Cash Activities | |||||||||||
Activity related to rabbi trust | $ | (247 | ) | $ | (843 | ) | $ | (1,250 | ) | ||
Capital expenditures | $ | (692 | ) | $ | (311 | ) | $ | 52 | |||
Dividends payable | $ | 4,233 | $ | 4,270 | $ | — | |||||
(Decrease) increase to noncontrolling interest due to (deconsolidation) consolidation of sponsored investment products, net | $ | (648 | ) | $ | (47,165 | ) | $ | 1,477 |
December 31, | |||||||
2015 | 2014 | ||||||
($ in thousands) | |||||||
Definite-lived intangible assets, net: | |||||||
Investment contracts | $ | 158,747 | $ | 158,747 | |||
Accumulated amortization | (152,676 | ) | (149,380 | ) | |||
Definite-lived intangible assets, net | 6,071 | 9,367 | |||||
Indefinite-lived intangible assets | 34,816 | 32,416 | |||||
Total intangible assets, net | $ | 40,887 | $ | 41,783 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Intangible assets, net | |||||||||||
Balance, beginning of period | $ | 41,783 | $ | 44,633 | $ | 48,711 | |||||
Acquisition | 2,400 | 1,075 | 356 | ||||||||
Amortization expense | (3,296 | ) | (3,925 | ) | (4,434 | ) | |||||
Balance, end of period | $ | 40,887 | $ | 41,783 | $ | 44,633 | |||||
Goodwill | |||||||||||
Balance, beginning of period | $ | 5,260 | $ | 5,260 | $ | 5,260 | |||||
Acquisition | 1,441 | — | — | ||||||||
Balance, end of period | $ | 6,701 | $ | 5,260 | $ | 5,260 |
December 31, | |||||||
2015 | 2014 | ||||||
($ in thousands) | |||||||
Marketable securities | $ | 41,496 | $ | 50,251 | |||
Equity method investments | 9,007 | 7,209 | |||||
Nonqualified retirement plan assets | 5,310 | 5,063 | |||||
Other investments | 925 | 925 | |||||
Total investments | $ | 56,738 | $ | 63,448 |
December 31, 2015 | |||||||||||||||
Cost | Unrealized Loss | Unrealized Gain | Fair Value | ||||||||||||
($ in thousands) | |||||||||||||||
Trading: | |||||||||||||||
Sponsored funds | $ | 31,167 | $ | (2,134 | ) | $ | 298 | $ | 29,331 | ||||||
Equity securities | 9,434 | (386 | ) | 120 | 9,168 | ||||||||||
Available-for-sale: | |||||||||||||||
Sponsored closed-end funds | 3,355 | (365 | ) | 7 | 2,997 | ||||||||||
Total marketable securities | $ | 43,956 | $ | (2,885 | ) | $ | 425 | $ | 41,496 |
December 31, 2014 | |||||||||||||||
Cost | Unrealized Loss | Unrealized Gain | Fair Value | ||||||||||||
($ in thousands) | |||||||||||||||
Trading: | |||||||||||||||
Sponsored funds | $ | 39,079 | $ | (1,190 | ) | $ | 423 | $ | 38,312 | ||||||
Equity securities | 8,421 | — | 319 | 8,740 | |||||||||||
Available-for-sale: | |||||||||||||||
Sponsored closed-end funds | 3,129 | (163 | ) | 233 | 3,199 | ||||||||||
Total marketable securities | $ | 50,629 | $ | (1,353 | ) | $ | 975 | $ | 50,251 |
December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
($ in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash equivalents | $ | 54,772 | $ | — | $ | — | $ | 54,772 | |||||||
Marketable securities trading: | |||||||||||||||
Sponsored funds | 29,331 | — | — | 29,331 | |||||||||||
Equity securities | 9,168 | — | — | 9,168 | |||||||||||
Marketable securities available-for-sale: | |||||||||||||||
Sponsored closed-end funds | 2,997 | — | — | 2,997 | |||||||||||
Other investments | |||||||||||||||
Nonqualified retirement plan assets | 5,310 | — | — | 5,310 | |||||||||||
Total assets measured at fair value | $ | 101,578 | $ | — | $ | — | $ | 101,578 |
December 31, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
($ in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash equivalents | $ | 202,054 | $ | — | $ | — | $ | 202,054 | |||||||
Marketable securities trading: | |||||||||||||||
Sponsored funds | 38,312 | — | — | 38,312 | |||||||||||
Equity securities | 8,740 | — | — | 8,740 | |||||||||||
Marketable securities available-for-sale: | |||||||||||||||
Sponsored closed-end funds | 3,199 | — | — | 3,199 | |||||||||||
Other investments | |||||||||||||||
Nonqualified retirement plan assets | 5,063 | — | — | 5,063 | |||||||||||
Total assets measured at fair value | $ | 257,368 | $ | — | $ | — | $ | 257,368 |
December 31, | |||||||
2015 | 2014 | ||||||
($ in thousands) | |||||||
Furniture and office equipment | $ | 5,840 | $ | 4,762 | |||
Computer equipment and software | 6,600 | 6,148 | |||||
Leasehold improvements | 11,071 | 8,454 | |||||
23,511 | 19,364 | ||||||
Accumulated depreciation and amortization | (14,395 | ) | (12,171 | ) | |||
Furniture, equipment and leasehold improvements, net | $ | 9,116 | $ | 7,193 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | 28,077 | $ | 31,787 | $ | 10,395 | |||||
State | 2,539 | 3,168 | 1,787 | ||||||||
Total current tax expense | 30,616 | 34,955 | 12,182 | ||||||||
Deferred | |||||||||||
Federal | 4,339 | 3,200 | 29,933 | ||||||||
State | 2,017 | 1,194 | 2,663 | ||||||||
Total deferred tax expense | 6,356 | 4,394 | 32,596 | ||||||||
Total expense for income taxes | $ | 36,972 | $ | 39,349 | $ | 44,778 |
Years Ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Tax at statutory rate | $ | 23,675 | 35 | % | $ | 47,922 | 35 | % | $ | 41,968 | 35 | % | ||||||||
State taxes, net of federal benefit | 2,717 | 4 | 4,357 | 3 | 2,893 | 2 | ||||||||||||||
Uncertain tax positions | — | — | (30,961 | ) | (22 | ) | — | — | ||||||||||||
IRS audit resolution | — | — | 15,505 | 11 | — | — | ||||||||||||||
Effect of net income attributable to noncontrolling interests | 1,492 | 2 | — | — | — | — | ||||||||||||||
Change in valuation allowance | 7,812 | 12 | 2,165 | 2 | (264 | ) | — | |||||||||||||
Other, net | 1,276 | 2 | 361 | — | 181 | — | ||||||||||||||
Income tax expense | $ | 36,972 | 55 | % | $ | 39,349 | 29 | % | $ | 44,778 | 37 | % |
December 31, | |||||||
2015 | 2014 | ||||||
($ in thousands) | |||||||
Deferred tax assets: | |||||||
Intangible assets | $ | 27,728 | $ | 36,340 | |||
Net operating losses | 20,591 | 21,547 | |||||
Compensation accruals | 7,804 | 6,757 | |||||
Investments | 8,704 | 8,717 | |||||
Unrealized loss/(gain) | 12,157 | 2,362 | |||||
Other | 118 | 46 | |||||
Gross deferred tax assets | 77,102 | 75,769 | |||||
Valuation allowance | (10,855 | ) | (2,397 | ) | |||
Gross deferred tax assets after valuation allowance | 66,247 | 73,372 | |||||
Deferred tax liabilities: | |||||||
Intangible assets | (12,104 | ) | (12,718 | ) | |||
Other investments | — | (492 | ) | ||||
Gross deferred tax liabilities | (12,104 | ) | (13,210 | ) | |||
Deferred tax assets, net | $ | 54,143 | $ | 60,162 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Balance, beginning of year | $ | — | $ | 32,602 | $ | 33,948 | |||||
Decrease related to tax positions taken in prior years | — | (32,602 | ) | (1,346 | ) | ||||||
Increase related to positions taken in the current year | — | — | — | ||||||||
Balance, end of year | $ | — | $ | — | $ | 32,602 |
Unrealized Gains and (Losses) on Securities Available-for- Sale | Foreign Currency Translation Adjustments | ||||||
($ in thousands) | |||||||
Balance December 31, 2014 | $ | (107 | ) | $ | (135 | ) | |
Unrealized net loss on available-for-sale securities, net of tax of $71 | (358 | ) | — | ||||
Foreign currency translation adjustments, net of tax of $266 | — | (434 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss | — | — | |||||
Net current-period other comprehensive loss | (358 | ) | (434 | ) | |||
Balance December 31, 2015 | $ | (465 | ) | $ | (569 | ) |
Unrealized Gains and (Losses) on Securities Available-for- Sale | Foreign Currency Translation Adjustments | ||||||
($ in thousands) | |||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||
Unrealized net gains on available-for-sale securities, net of tax of ($76) | 124 | — | |||||
Foreign currency translation adjustments, net of tax of $132 | — | (216 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss | — | — | |||||
Net current-period other comprehensive income (loss) | 124 | (216 | ) | ||||
Balance December 31, 2014 | $ | (107 | ) | $ | (135 | ) |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Stock-based compensation expense | $ | 11,863 | $ | 9,778 | $ | 7,960 |
Number of shares | Weighted Average Grant Date Fair Value | |||||
Outstanding at December 31, 2014 | 179,936 | $ | 143.25 | |||
Granted | 118,380 | $ | 134.37 | |||
Forfeited | (19,289 | ) | $ | 142.41 | ||
Settled | (87,410 | ) | $ | 102.00 | ||
Outstanding at December 31, 2015 | 191,617 | $ | 156.66 |
Number of shares | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2014 | 162,824 | $ | 18.79 | |||
Granted | — | $ | — | |||
Exercised | (6,188 | ) | $ | 19.04 | ||
Forfeited | — | $ | — | |||
Outstanding at December 31, 2015 | 156,636 | $ | 18.78 | |||
Vested and exercisable at December 31, 2015 | 156,636 | $ | 18.78 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands, except per share amounts) | |||||||||||
Net Income | $ | 30,671 | $ | 96,965 | $ | 77,130 | |||||
Noncontrolling interests | 4,435 | 735 | (1,940 | ) | |||||||
Net Income Attributable to Common Stockholders | $ | 35,106 | $ | 97,700 | $ | 75,190 | |||||
Shares: | |||||||||||
Basic: Weighted-average number of shares outstanding | 8,797 | 9,091 | 8,188 | ||||||||
Plus: Incremental shares from assumed conversion of dilutive instruments | 163 | 201 | 245 | ||||||||
Diluted: Weighted-average number of shares outstanding | 8,960 | 9,292 | 8,433 | ||||||||
Earnings per share—basic | $ | 3.99 | $ | 10.75 | $ | 9.18 | |||||
Earnings per share—diluted | $ | 3.92 | $ | 10.51 | $ | 8.92 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
($ in thousands) | |||||||||||
Virtus Emerging Markets Opportunities Fund | |||||||||||
Investment management, administration and transfer agent fees | $ | 62,329 | $ | 50,435 | $ | 53,202 | |||||
Percent of total revenues | 16 | % | 11 | % | 14 | % | |||||
Virtus Multi-Sector Short Term Bond Fund | |||||||||||
Investment management, administration and transfer agent fees | $ | 49,174 | $ | 55,401 | $ | 52,568 | |||||
Percent of total revenues | 13 | % | 12 | % | 14 | % | |||||
Virtus Equity Trend Fund (a) | |||||||||||
Investment management, administration and transfer agent fees | $ | 30,398 | $ | 61,566 | $ | 41,921 | |||||
Percent of total revenues | 8 | % | 14 | % | 11 | % |
(a) | Formerly Virtus Premium AlphaSector™ Fund |
As of December 31, | |||||||
2015 | 2014 | ||||||
($ in thousands) | |||||||
Total cash | $ | 11,866 | $ | 8,687 | |||
Total investments | 323,335 | 236,652 | |||||
All other assets | 8,549 | 6,960 | |||||
Total liabilities | (15,387 | ) | (12,556 | ) | |||
Redeemable noncontrolling interest | (73,864 | ) | (23,071 | ) | |||
The Company’s net interests in consolidated sponsored investment products | $ | 254,499 | $ | 216,672 | |||
The Company's net interest as a percentage of total investments of consolidated sponsored investment products | 78.7 | % | 91.6 | % |
As of December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
($ in thousands) | |||||||||||||||
Assets | |||||||||||||||
Debt securities | $ | — | $ | 151,156 | $ | 1,397 | $ | 152,553 | |||||||
Equity securities | 162,986 | 7,796 | — | 170,782 | |||||||||||
Derivatives | 33 | 738 | — | 771 | |||||||||||
Total assets measured at fair value | $ | 163,019 | $ | 159,690 | $ | 1,397 | $ | 324,106 | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | 128 | $ | 844 | $ | — | $ | 972 | |||||||
Short sales | 5,334 | 75 | — | 5,409 | |||||||||||
Total liabilities measured at fair value | $ | 5,462 | $ | 919 | $ | — | $ | 6,381 |
As of December 31, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
($ in thousands) | |||||||||||||||
Assets | |||||||||||||||
Debt securities | $ | — | $ | 135,050 | $ | 1,065 | $ | 136,115 | |||||||
Equity securities | 82,417 | 18,120 | — | 100,537 | |||||||||||
Derivatives | 154 | 227 | — | 381 | |||||||||||
Total assets measured at fair value | $ | 82,571 | $ | 153,397 | $ | 1,065 | $ | 237,033 | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | 191 | $ | — | $ | — | $ | 191 | |||||||
Short sales | 7,491 | 674 | — | 8,165 | |||||||||||
Total liabilities measured at fair value | $ | 7,682 | $ | 674 | $ | — | $ | 8,356 |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Level 3 Debt Securities (a) | |||||||
Balance at beginning of period | $ | 1,065 | $ | — | |||
Purchases | 913 | 1,119 | |||||
Sales | (370 | ) | — | ||||
Paydowns | (10 | ) | (3 | ) | |||
Change in unrealized loss, net | (113 | ) | (51 | ) | |||
Change in realized loss, net | (141 | ) | — | ||||
Transfers from Level 2 | 151 | — | |||||
Transfers to Level 2 | (98 | ) | — | ||||
Balance at end of period | $ | 1,397 | $ | 1,065 |
(a) | None of the securities were internally fair valued at December 31, 2015 or December 31, 2014. |
Volume | |||||
($ in thousands) | |||||
Purchased options | $ | 3,015 | (a) | ||
Written options | 755 | (b) | |||
Futures contracts long/short | 278 | (c) | |||
Forward foreign currency exchange purchase contracts | 5,591 | (d) | |||
Forward foreign currency exchange sale contracts | 29,069 | (e) | |||
Interest rate swaps | 69,094 | (f) | |||
Other swaps | 35,180 | (f), (g) |
(g) | Includes credit default, total return, inflation and variance swaps. |
Fair Value | |||||||
Assets | Liabilities | ||||||
($ in thousands) | |||||||
Futures contracts | $ | 77 | $ | 128 | |||
Forward foreign currency exchange contracts | 388 | 287 | |||||
Swaps | 897 | 502 | |||||
Purchased options | 2,071 | 63 | |||||
Purchased swaptions | 803 | — | |||||
Written options | — | 654 | |||||
Total derivative assets and liabilities in the Consolidated Balance Sheets | 4,236 | 1,634 | |||||
Derivatives not subject to a master netting agreement | (978 | ) | (281 | ) | |||
Total assets and liabilities subject to a master netting agreement | $ | 3,258 | $ | 1,353 |
As of December 31, 2015 | |||||||||||||||
Amount Subject to a Master Netting Arrangement | Derivatives Available for Offset | Collateral Pledged or Received | Net Amount | ||||||||||||
($ in thousands) | |||||||||||||||
Derivative assets | $ | 3,258 | $ | (1,140 | ) | $ | (1,784 | ) | $ | 334 | |||||
Derivative liabilities | 1,353 | (1,140 | ) | (209 | ) | 4 |
Year Ended December 31, | |||
2015 | |||
($ in thousands) | |||
Interest rate contracts | $ | (80 | ) |
Foreign currency exchange contracts | 181 | ||
Equity contracts | 312 | ||
Commodity contracts | 324 | ||
Credit contracts | 8 | ||
Total | $ | 745 |
As of December 31, | |||
2015 | |||
($ in thousands) | |||
Total cash equivalents | $ | 8,297 | |
Total investments | 199,485 | ||
Other assets | 1,467 | ||
Debt | (152,597 | ) | |
Securities purchased payable | (18,487 | ) | |
The Company’s net interests in the consolidated investment product | $ | 38,165 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
($ in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash equivalents | $ | 8,297 | $ | — | $ | — | $ | 8,297 | |||||||
Bank loans | — | 199,485 | — | 199,485 | |||||||||||
Total Assets Measured at Fair Value | $ | 8,297 | $ | 199,485 | $ | — | $ | 207,782 |
As of December 31, 2015 | |||||||||||||||||||
Balance Before Consolidation of Investment Products | Consolidated Sponsored Investment Products | Consolidated Investment Products | Eliminations and Adjustments (a) | Balances as Reported in Consolidated Balance Sheet | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Total cash | $ | 87,574 | $ | 11,866 | $ | 8,297 | $ | — | $ | 107,737 | |||||||||
Total investments | 349,147 | 323,335 | 199,485 | (292,409 | ) | 579,558 | |||||||||||||
All other assets | 162,673 | 8,549 | 1,467 | (255 | ) | 172,434 | |||||||||||||
Total assets | $ | 599,394 | $ | 343,750 | $ | 209,249 | $ | (292,664 | ) | $ | 859,729 | ||||||||
Total liabilities | $ | 89,937 | $ | 15,642 | $ | 171,084 | $ | (255 | ) | $ | 276,408 | ||||||||
Redeemable noncontrolling interest | — | — | — | 73,864 | 73,864 | ||||||||||||||
Equity attributable to stockholders of the Company | 509,624 | 328,108 | 38,165 | (366,273 | ) | 509,624 | |||||||||||||
Non-redeemable noncontrolling interest | (167 | ) | — | — | — | (167 | ) | ||||||||||||
Total liabilities and equity | $ | 599,394 | $ | 343,750 | $ | 209,249 | $ | (292,664 | ) | $ | 859,729 |
As of December 31, 2014 | |||||||||||||||||||
Balance Before Consolidation of Investment Products | Consolidated Sponsored Investment Products | Consolidated Investment Products | Eliminations and Adjustments (a) | Balances as Reported in Consolidated Balance Sheet | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Total cash | $ | 202,847 | $ | 8,687 | $ | — | $ | — | $ | 211,534 | |||||||||
Total investments | 279,863 | 236,652 | — | (216,415 | ) | 300,100 | |||||||||||||
All other assets | 180,436 | 6,960 | — | (257 | ) | 187,139 | |||||||||||||
Total assets | $ | 663,146 | $ | 252,299 | $ | — | $ | (216,672 | ) | $ | 698,773 | ||||||||
Total liabilities | $ | 99,794 | $ | 12,813 | $ | — | $ | (257 | ) | $ | 112,350 | ||||||||
Redeemable noncontrolling interest | — | — | — | 23,071 | 23,071 | ||||||||||||||
Equity attributable to stockholders of the Company | 563,542 | 239,486 | — | (239,486 | ) | 563,542 | |||||||||||||
Non-redeemable noncontrolling interest | (190 | ) | — | — | — | (190 | ) | ||||||||||||
Total liabilities and equity | $ | 663,146 | $ | 252,299 | $ | — | $ | (216,672 | ) | $ | 698,773 |
(a) | Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest. |
For the Year Ended December 31, 2015 | |||||||||||||||||||
Balance Before Consolidation of Investment Products | Consolidated Sponsored Investment Products | Consolidated Investment Products | Eliminations and Adjustments (a) | Balances as Reported in Consolidated Statement of Operations | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Total operating revenues | $ | 383,581 | $ | — | $ | — | $ | (1,604 | ) | $ | 381,977 | ||||||||
Total operating expenses | 297,465 | 5,738 | — | (1,604 | ) | 301,599 | |||||||||||||
Operating income (loss) | 86,116 | (5,738 | ) | — | — | 80,378 | |||||||||||||
Total other non-operating expense | (14,214 | ) | (11,677 | ) | (1,832 | ) | 14,988 | (12,735 | ) | ||||||||||
Income (loss) before income tax expense | 71,902 | (17,415 | ) | (1,832 | ) | 14,988 | 67,643 | ||||||||||||
Income tax expense | 36,972 | — | — | — | 36,972 | ||||||||||||||
Net income (loss) | 34,930 | (17,415 | ) | (1,832 | ) | 14,988 | 30,671 | ||||||||||||
Noncontrolling interests | 176 | — | — | 4,259 | 4,435 | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 35,106 | $ | (17,415 | ) | $ | (1,832 | ) | $ | 19,247 | $ | 35,106 |
For the Year Ended December 31, 2014 | |||||||||||||||||||
Balance Before Consolidation of Investment Products | Consolidated Sponsored Investment Products | Consolidated Investment Products | Eliminations and Adjustments (a) | Balances as Reported in Consolidated Statement of Operations | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Total operating revenues | $ | 451,259 | $ | — | $ | — | $ | (661 | ) | $ | 450,598 | ||||||||
Total operating expenses | 316,840 | 3,699 | — | (661 | ) | 319,878 | |||||||||||||
Operating income (loss) | 134,419 | (3,699 | ) | — | — | 130,720 | |||||||||||||
Total other non-operating income (expense) | 2,502 | 2,619 | — | 473 | 5,594 | ||||||||||||||
Income (loss) before income tax expense | 136,921 | (1,080 | ) | — | 473 | 136,314 | |||||||||||||
Income taxes | 39,349 | — | — | — | 39,349 | ||||||||||||||
Net income (loss) | 97,572 | (1,080 | ) | — | 473 | 96,965 | |||||||||||||
Noncontrolling interests | 128 | — | — | 607 | 735 | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 97,700 | $ | (1,080 | ) | $ | — | $ | 1,080 | $ | 97,700 |
For the Year Ended December 31, 2013 | |||||||||||||||||||
Balance Before Consolidation of Investment Products | Consolidated Sponsored Investment Products | Consolidated Investment Products | Eliminations and Adjustments (a) | Balances as Reported in Consolidated Statement of Operations | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Total operating revenues | $ | 389,202 | $ | — | $ | — | $ | 13 | $ | 389,215 | |||||||||
Total operating expenses | 274,913 | 785 | — | 13 | 275,711 | ||||||||||||||
Operating income (loss) | 114,289 | (785 | ) | — | — | 113,504 | |||||||||||||
Total other non-operating income | 5,620 | 6,098 | — | (3,314 | ) | 8,404 | |||||||||||||
Income (loss) before income tax expense | 119,909 | 5,313 | — | (3,314 | ) | 121,908 | |||||||||||||
Income tax expense | 44,778 | — | — | — | 44,778 | ||||||||||||||
Net income (loss) | 75,131 | 5,313 | — | (3,314 | ) | 77,130 | |||||||||||||
Noncontrolling interests | 59 | — | — | (1,999 | ) | (1,940 | ) | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 75,190 | $ | 5,313 | $ | — | $ | (5,313 | ) | $ | 75,190 |
(a) | Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest. |
2015 | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
($ in thousands, except share data) | |||||||||||||||
Revenues | $ | 86,115 | $ | 92,375 | $ | 99,656 | $ | 103,831 | |||||||
Operating Income | 16,506 | 23,122 | 16,208 | 24,542 | |||||||||||
Net Income (Loss) Attributable to Common Stockholders | 6,636 | (649 | ) | 9,777 | 19,342 | ||||||||||
Earnings (loss) per share—Basic | $ | 0.78 | $ | (0.07 | ) | $ | 1.10 | $ | 2.16 | ||||||
Earnings (loss) per share—Diluted | $ | 0.76 | $ | (0.07 | ) | $ | 1.08 | $ | 2.11 |
2014 | |||||||||||||||
Fourth Quarter | Third Quarter (1) | Second Quarter | First Quarter | ||||||||||||
($ in thousands, except share data) | |||||||||||||||
Revenues | $ | 112,137 | $ | 117,841 | $ | 112,749 | $ | 107,871 | |||||||
Operating Income | 36,665 | 38,927 | 22,502 | 32,626 | |||||||||||
Net Income Attributable to Common Stockholders | 18,879 | 37,340 | 19,543 | 21,938 | |||||||||||
Earnings per share—Basic | $ | 2.09 | $ | 4.10 | $ | 2.14 | $ | 2.41 | |||||||
Earnings per share—Diluted | $ | 2.05 | $ | 4.02 | $ | 2.10 | $ | 2.34 |
(1) | The third quarter of 2014 includes a net tax benefit of approximately $15.5 million due to completion of the audit of the Company’s 2011 federal corporate income tax return. |
Name | Jurisdiction | |
Cliffwater Investments, LLC | Delaware | |
Duff & Phelps Investment Management Co. | Illinois | |
ETF Distributors LLC | Delaware | |
ETFis Holdings LLC | Delaware | |
Euclid Advisors LLC | New York | |
Kayne Anderson Rudnick Investment Management, LLC | California | |
Newfleet Asset Management, LLC | Delaware | |
Rampart Investment Management Company, LLC | Delaware | |
Virtus Alternative Investment Advisers, Inc. | Connecticut | |
Virtus ETF Advisers LLC | Delaware | |
Virtus ETF Solutions LLC | Delaware | |
Virtus Fund Services, LLC | Delaware | |
Virtus Investment Advisers, Inc. | Massachusetts | |
Virtus Partners, Inc. | Delaware | |
Virtus Retirement Investment Advisers, LLC | Delaware | |
VP Distributors, LLC | Delaware | |
Zweig Advisers LLC | Delaware |
/S/ GEORGE R. AYLWARD |
George R. Aylward |
President, Chief Executive Officer and Director |
(Principal Executive Officer) |
/S/ MICHAEL A. ANGERTHAL |
Michael A. Angerthal |
Executive Vice President, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/S/ GEORGE R. AYLWARD |
George R. Aylward |
President, Chief Executive Officer and Director |
(Principal Executive Officer) |
/S/ MICHAEL A. ANGERTHAL |
Michael A. Angerthal |
Executive Vice President, Chief Financial Officer |
(Principal Financial Officer and Principal Accounting Officer) |
%2 4@6],ZA3
MZ.; Q=H[^/3(17#C+6Y5]L
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MYCQ_3\IXRLL9<:!?J_'6>IV:(6]9A+0TH@5PU<)]P(J@L0#"FL@J4B[=,BLD)1+9W=\'V22:L\D4N0! AI)((M;X56TUQHX,
M)49F.358K$$OF*"PG03U)S::)4;!X<@=A\%9AP39UBM(++^-;GCJ0D/@R2"D
M0G;H!_"I3;5F==J"[Z#<.R/&X JD8%T""!R" & $XM<(8Q$ ;#8RY0M)4E"J$%R91W?W,>H''-3]O,:UK&
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 05, 2016 |
Jun. 30, 2015 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VRTS | ||
Entity Registrant Name | VIRTUS INVESTMENT PARTNERS, INC. | ||
Entity Central Index Key | 0000883237 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 8,408,228 | ||
Entity Public Float | $ 915,291,836 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in $ per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 9,613,088 | 9,551,274 |
Common stock, shares outstanding (in shares) | 8,398,944 | 8,975,833 |
Treasury stock, shares (in shares) | 1,214,144 | 575,441 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 30,671 | $ 96,965 | $ 77,130 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment, net of tax of $266, $132 and ($50) for the years ended December 31, 2015, 2014 and 2013, respectively | (434) | (216) | 81 |
Unrealized (loss) gain on available-for-sale securities, net of tax of $71, ($76), and $223 for the years ended December 31, 2015, 2014 and 2013, respectively | (358) | 124 | 56 |
Other comprehensive (loss) income | (792) | (92) | 137 |
Comprehensive income | 29,879 | 96,873 | 77,267 |
Comprehensive income (loss) attributable to noncontrolling interests | 4,435 | 735 | (1,940) |
Comprehensive income attributable to common stockholders | $ 34,314 | $ 97,608 | $ 75,327 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax benefit (expense) | $ 266 | $ 132 | $ (50) |
Unrealized gain (loss) on available-for-sale securities, tax benefit (expense) | $ 71 | $ (76) | $ 223 |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
Accumulated Other Comprehensive (Loss) Income [Member] |
Treasury Stock [Member] |
Total Attributed To Shareholders [Member] |
Non-controlling Interest [Member] |
Redeemable Non-controlling Interest [Member] |
---|---|---|---|---|---|---|---|---|---|
Beginning Balance (in shares) at Dec. 31, 2012 | 7,826,674 | 245,000 | |||||||
Beginning Balance at Dec. 31, 2012 | $ 244,471,000 | $ 81,000 | $ 942,825,000 | $ (680,411,000) | $ (287,000) | $ (17,734,000) | $ 244,474,000 | $ (3,000) | $ 3,163,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 75,131,000 | 75,190,000 | 75,190,000 | (59,000) | 1,999,000 | ||||
Net unrealized loss on securities available-for-sale | 56,000 | 56,000 | 56,000 | ||||||
Foreign currency translation adjustment | 81,000 | 81,000 | 81,000 | ||||||
Activity of noncontrolling interests, net | 1,477,000 | 37,024,000 | |||||||
Issuance of common stock, net | 191,578,000 | $ 13,000 | 191,565,000 | 191,578,000 | |||||
Issuance of common stock, net (in shares) | 1,298,386 | ||||||||
Cash dividends declared | 0 | ||||||||
Repurchase of common shares | (19,704,000) | $ (19,704,000) | (19,704,000) | ||||||
Repurchase of common shares (in shares) | 105,000 | 105,000 | |||||||
Issuance of common stock related to employee stock transactions | 633,000 | $ 1,000 | 632,000 | 633,000 | |||||
Issuance of common stock related to employee stock transactions (in shares) | 85,461 | ||||||||
Taxes paid on stock-based compensation | (7,513,000) | (7,513,000) | (7,513,000) | ||||||
Stock-based compensation | 7,657,000 | 7,657,000 | 7,657,000 | ||||||
Excess tax benefits from stock-based compensation | 478,000 | 478,000 | 478,000 | ||||||
Ending Balance (in shares) at Dec. 31, 2013 | 9,105,521 | 350,000 | |||||||
Ending Balance at Dec. 31, 2013 | 492,868,000 | $ 95,000 | 1,135,644,000 | (605,221,000) | (150,000) | $ (37,438,000) | 492,930,000 | (62,000) | 42,186,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 97,572,000 | 97,700,000 | 97,700,000 | (128,000) | (607,000) | ||||
Net unrealized loss on securities available-for-sale | 124,000 | 124,000 | 124,000 | ||||||
Foreign currency translation adjustment | (216,000) | (216,000) | (216,000) | ||||||
Activity of noncontrolling interests, net | (47,165,000) | (18,508,000) | |||||||
Cash dividends declared | (12,451,000) | (12,451,000) | (12,451,000) | ||||||
Repurchase of common shares | $ (40,261,000) | $ (40,261,000) | (40,261,000) | ||||||
Repurchase of common shares (in shares) | 225,441 | 225,441 | 225,441 | ||||||
Issuance of common stock related to employee stock transactions | $ 1,417,000 | $ 1,000 | 1,416,000 | 1,417,000 | |||||
Issuance of common stock related to employee stock transactions (in shares) | 95,753 | ||||||||
Taxes paid on stock-based compensation | (9,512,000) | (9,512,000) | (9,512,000) | ||||||
Stock-based compensation | 9,006,000 | 9,006,000 | 9,006,000 | ||||||
Excess tax benefits from stock-based compensation | 24,805,000 | 24,805,000 | 24,805,000 | ||||||
Ending Balance (in shares) at Dec. 31, 2014 | 8,975,833 | 575,441 | |||||||
Ending Balance at Dec. 31, 2014 | 563,352,000 | $ 96,000 | 1,148,908,000 | (507,521,000) | (242,000) | $ (77,699,000) | 563,542,000 | (190,000) | 23,071,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 34,930,000 | 35,106,000 | 35,106,000 | (176,000) | (4,259,000) | ||||
Net unrealized loss on securities available-for-sale | (358,000) | (358,000) | (358,000) | ||||||
Foreign currency translation adjustment | (434,000) | (434,000) | (434,000) | ||||||
Activity of noncontrolling interests, net | (648,000) | (199,000) | (199,000) | 199,000 | 55,052,000 | ||||
Cash dividends declared | (16,009,000) | (16,009,000) | (16,009,000) | ||||||
Repurchase of common shares | $ (80,000,000) | $ (80,000,000) | (80,000,000) | ||||||
Repurchase of common shares (in shares) | 638,703 | 638,703 | 638,703 | ||||||
Issuance of common stock related to employee stock transactions | $ 842,000 | 842,000 | 842,000 | ||||||
Issuance of common stock related to employee stock transactions (in shares) | 61,814 | ||||||||
Taxes paid on stock-based compensation | (5,080,000) | (5,080,000) | (5,080,000) | ||||||
Stock-based compensation | 11,116,000 | 11,116,000 | 11,116,000 | ||||||
Excess tax benefits from stock-based compensation | 1,098,000 | 1,098,000 | 1,098,000 | ||||||
Ending Balance (in shares) at Dec. 31, 2015 | 8,398,944 | 1,214,144 | |||||||
Ending Balance at Dec. 31, 2015 | $ 509,457,000 | $ 96,000 | $ 1,140,875,000 | $ (472,614,000) | $ (1,034,000) | $ (157,699,000) | $ 509,624,000 | $ (167,000) | $ 73,864,000 |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Stockholders' Equity [Abstract] | ||||||||||
Cash dividends declared (in $ per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.8 | $ 1.35 | $ 0 |
Organization and Business |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Virtus Investment Partners, Inc. (the “Company,” “we,” “us,” “our” or “Virtus”), a Delaware corporation, operates in the investment management industry through its subsidiaries. The Company provides investment management and related services to individuals and institutions throughout the United States of America. The Company’s retail investment management services are provided to individuals through products consisting of open-end mutual funds, closed-end funds, variable insurance funds, exchange traded funds (“ETFs”) and separately managed accounts. Institutional investment management services are provided primarily to corporations, multi-employer retirement funds, employee retirement systems, foundations, endowments and subadvisory accounts. |
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies, which have been consistently applied, are as follows: Principles of Consolidation and Basis of Presentation The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest, referred to as consolidated sponsored investment products or consolidated investment product. The Company is considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Notes 17, 18 and 19 for additional information related to the consolidation of sponsored investment products and the consolidated investment product. Intercompany accounts and transactions have been eliminated. The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power through voting or similar rights to direct the activities that most significantly impact the entity’s economic performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If any entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. The Company reclassified certain amounts in prior-period financial statements to conform to the current period's presentation. Collateralized Debt Obligations During 2015, the Company contributed $40.0 million to a special purpose entity ("SPE") that was created specifically to accumulate bank loan assets for securitization as a potential collateralized loan obligation ("CLO") that will be managed by its Newfleet affiliate. The special purpose entity is a VIE, and the Company consolidates the SPE's assets and liabilities as a consolidated investment product within its financial statements as it is the primary beneficiary of the VIE. The Company determined that it is the primary beneficiary of the VIE as the Company has the power to direct the activities that most significantly impact the economic performance of the entity and has the obligation to absorb losses, or the rights to receive benefits from, the VIE that could potentially be significant to the VIE. The Company's $40.0 million contribution to the SPE serves as first loss protection for the bank lending counterparty under the Financing Facility. In the event of default, the recourse to the Company is limited to its investments. Additionally, certain of the Company’s affiliates serve as the collateral manager for other collateralized loan and collateralized bond obligations (collectively, “CDOs”). These CDOs’ assets and liabilities reside in bankruptcy remote, special purpose entities in which the Company has no ownership in, nor holds any notes issued by, the CDOs and provides neither recourse nor guarantees. Accordingly, the Company’s financial exposure to these CDOs is limited only to the collateral investment management fees it earns, which totaled $0.9 million, $1.6 million and $1.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. These CDOs are also considered VIEs, and as a result, the Company is required to consider the nature of its involvement in these VIEs in determining if it should consolidate the entity. In assessing consolidation of these CDOs, the Company assessed whether the collateral management fees represented a variable interest and the Company was the primary beneficiary of the VIE. The primary beneficiary assessment includes an analysis of the rights of the Company in its capacity as collateral manager and an analysis of whether the Company could receive significant benefits or absorb significant losses from these CDOs. The Company determined that its investment management fees received as collateral manager for these CDOs did not represent a variable interest due to the anticipated fees being fixed in nature, senior to interest and principal payments, and any subordinated fee elements were insignificant relative to the total fee and total anticipated economic performance of these CDOs. Noncontrolling Interest Noncontrolling interests represent the profit or loss attributed to third-party investors in consolidated sponsored investment products and other affiliates. Movements in amounts attributable to noncontrolling interests in consolidated entities on the Company’s Consolidated Statements of Operations offset the operating results, gains and losses and interest expense of the third-party investors. Noncontrolling interests related to certain consolidated sponsored investment products are classified as redeemable noncontrolling interests because investors in these funds may request withdrawals at any time. Use of Estimates The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management believes the estimates used in preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. Segment Information Accounting Standards Codification (“ASC”) 280, Segment Reporting, establishes disclosure requirements relating to operating segments in annual and interim financial statements. Business or operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates in one business segment, namely as an asset manager providing investment management and distribution services for individual and institutional clients. The Company’s Chief Executive Officer is the Company’s chief operating decision maker. Although the Company provides disclosures regarding assets under management and other asset flows by product, the Company’s determination that it operates in one business segment is based on the fact that the same investment and operational resources support multiple products, such products have the same or similar regulatory framework and the Company’s chief operating decision maker reviews the Company’s financial performance at a consolidated level. Investment organizations within the Company are generally not aligned with specific product lines. Furthermore, investment professionals manage both retail and institutional products. Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and money market fund investments. Investments Marketable Securities Marketable securities include sponsored mutual funds, sponsored variable insurance funds and other equity securities classified as trading securities and sponsored closed-end funds classified as available-for-sale securities which are carried at fair value in accordance with ASC 320, Investments—Debt and Equity Securities (“ASC 320”). Marketable securities are marked to market based on the respective publicly quoted net asset values of the funds or market prices of the equity securities or bonds. Marketable securities transactions are recorded on a trade date basis. Any unrealized appreciation or depreciation on available-for-sale securities, net of income taxes, is reported as a component of accumulated other comprehensive income in equity attributable to stockholders. On a quarterly basis, the Company conducts a review to assess whether other-than-temporary impairments exist on its available-for-sale marketable securities. Other-than-temporary declines in value may exist if the fair value of a marketable security has been below the carrying value for an extended period of time. If an other-than-temporary decline in value is determined to exist, the unrealized investment loss, net of tax, is recognized in the Consolidated Statements of Operations in the period in which the other-than-temporary decline in value occurs, as well as an accompanying permanent adjustment to accumulated other comprehensive income. Equity Method Investments The Company’s investment in noncontrolled entities, where the Company does not hold a controlling financial interest but has the ability to significantly influence operating and financial matters, is accounted for under the equity method of accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures. Under the equity method of accounting, the Company’s share of the noncontrolled entities net income or loss is recorded in other income (expense), net in the accompanying Consolidated Statements of Operations. Distributions received reduce the Company’s investment balance. The investment is evaluated for impairment as events or changes indicate that the carrying amount exceeds its fair value. If the carrying amount of an investment does exceed its fair value and the decline in fair value is deemed to be other-than-temporary, an impairment charge will be recorded. Non-qualified Retirement Plan Assets and Liabilities The Company has a non-qualified retirement plan (the “Excess Incentive Plan”) that allows certain employees to voluntarily defer compensation. Under the Excess Incentive Plan, participants elect to defer a portion of their compensation, which the Company then contributes into a trust. Each participant is responsible for designating investment options for assets they contribute, and the ultimate distribution paid to each participant reflects any gains or losses on the assets realized while in the trust. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. Assets held in trust, which are considered trading securities, are included in investments and are carried at fair value in accordance with ASC 820 Fair Value Measurement; the associated obligations to participants are included in other liabilities in the Company’s Consolidated Balance Sheets and approximate the fair value of the associated assets. Assets held in trust consist of mutual funds and are recorded at fair value, utilizing Level 1 valuation techniques. Deferred Commissions Deferred commissions, which are included in other assets in the Company's Consolidated Balance Sheets, are commissions paid to broker-dealers on sales of mutual fund shares. Deferred commissions are recovered by the receipt of monthly asset-based distributor fees from the mutual funds or contingent deferred sales charges received upon redemption of shares within one to five years, depending on the fund share class. The deferred costs resulting from the sale of shares are amortized on a straight-line basis over a one to five-year period, depending on the fund share class, or until the underlying shares are redeemed. Deferred commissions are periodically assessed for impairment and additional amortization expense is recorded, as appropriate. Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of three to seven years for furniture and office equipment, and three to five years for computer equipment and software. Leasehold improvements are depreciated over the shorter of the remaining estimated lives of the related leases or useful lives of the improvements. Major renewals or betterments are capitalized, and recurring repairs and maintenance are expensed as incurred. Leasehold improvements that are funded upfront by a landlord and are constructed for the benefit of the Company are recorded at cost and depreciated on a straight-line basis over the original minimum term of the lease and a corresponding lease incentive liability in the same amount is also recorded and initially amortized over the same period. Leases The Company currently leases office space and equipment under various leasing arrangements. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements are classified as operating leases and contain renewal options, rent escalation clauses or other inducements provided by the lessor. Rent expense under non-cancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. Build-out allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the effective date of the lease. Intangible Assets and Goodwill Definite-lived intangible assets are comprised of acquired investment advisory contracts. These assets are amortized on a straight-line basis over the estimated useful lives of such assets, which range from one to sixteen years. Definite-lived intangible assets are evaluated for impairment on an ongoing basis under GAAP whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be fully recoverable. The Company determines if impairment has occurred by comparing estimates of future undiscounted cash flows to the carrying value of assets. Assets are considered impaired, and impairment is recorded, if the carrying value exceeds the expected future undiscounted cash flows. Goodwill represents the excess of the purchase price of acquisitions and mergers over the identified net assets and liabilities acquired. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not being amortized. A single reporting unit has been identified for the purpose of assessing potential future impairments of goodwill. An impairment analysis of goodwill is performed annually or more frequently, if warranted by events or changes in circumstances affecting the Company’s business. The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2011-08, Testing Goodwill for Impairment, which states that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company’s 2015 and 2014 annual goodwill impairment analysis did not result in any impairment charges. Indefinite-lived intangible assets are comprised of closed-end and exchange traded fund investment advisory contracts. These assets are tested for impairment annually and when events or changes in circumstances indicate the assets might be impaired. The Company follows ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which provides entities with an option to perform a qualitative assessment of indefinite-lived intangible assets other than goodwill for impairment to determine if additional impairment testing is necessary. The Company’s 2015 and 2014 annual indefinite-lived intangible assets impairment analyses did not result in any impairment charges. Treasury Stock Treasury stock is accounted for under the cost method and is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Upon any subsequent resale, the treasury stock account is reduced by the cost of such stock. Revenue Recognition Investment management fees, distribution and service fees and administration and transfer agent fees are recorded as revenues during the period in which services are performed. Investment management fees are earned based upon a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payment. The Company accounts for investment management fees in accordance with ASC 605, Revenue Recognition, and has recorded its management fees net of fees paid to unaffiliated subadvisers. The Company considers the nature of its contractual arrangements in determining whether to recognize revenue based on the gross amount billed or net amount retained. The Company has evaluated the factors in ASC 605-45 in determining whether to record revenue on a gross or net basis with significant weight placed on: (i) whether the Company is the primary obligor in the arrangement; and (ii) whether the Company has latitude in establishing price. Amounts paid to unaffiliated subadvisers for the years ended December 31, 2015, 2014 and 2013 were $76.4 million, $124.4 million and $96.1 million, respectively. Distribution and service fees are earned based on a percentage of assets under management and are paid monthly pursuant to the terms of the respective distribution and service fee contracts. Underwriter fees are sales-based charges on sales of certain class A-share mutual funds. Administration and transfer agent fees consist of fund administration fees, transfer agent fees and fiduciary fees. Fund administration and transfer agent fees are earned based on the average daily assets in the funds. Other income and fees consist primarily of redemption income on the early redemption of certain share classes of mutual funds. Advertising and Promotion Advertising and promotional costs include print advertising and promotional items and are expensed as incurred. These costs are classified in other operating expenses in the Consolidated Statements of Operations. Stock-based Compensation The Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for share-based awards based on the estimated fair value on the date of grant. Restricted stock units (“RSUs”) are stock awards that entitle the holder to receive shares of the Company’s common stock as the award vests over time or when certain performance targets are achieved. The fair value of each RSU award is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Compensation expense for RSU awards is recognized ratably over the vesting period on a straight-line basis. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of the amount of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events that have been included in the Company’s financial statements or tax returns. Deferred tax liabilities and assets result from temporary differences between the book value and tax basis of the Company’s assets, liabilities and carry-forwards, such as net operating losses or tax credits. The Company’s methodology for determining the realizability of deferred tax assets includes consideration of taxable income in prior carryback year(s) if carryback is permitted under the tax law, as well as consideration of the reversal of deferred tax liabilities that are in the same period and jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The Company’s methodology also includes estimates of future taxable income from its operations, as well as the expiration dates and amounts of carry-forwards related to net operating losses and capital losses. These estimates are projected through the life of the related deferred tax assets based on assumptions that the Company believes to be reasonable and consistent with demonstrated operating results. Changes in future operating results not currently forecasted may have a significant impact on the realization of deferred tax assets. Valuation allowances are provided when it is determined that it is more likely than not that the benefit of deferred tax assets will not be realized. Comprehensive Income The Company reports all changes in comprehensive income in the Consolidated Statements of Changes in Stockholders’ Equity and the Consolidated Statements of Comprehensive Income. Comprehensive income includes net income (loss), foreign currency translation adjustments (net of tax) and unrealized gains and losses on investments classified as available-for-sale (net of tax). Earnings per Share Earnings per share (“EPS”) is calculated in accordance with ASC 260, Earnings per Share. Basic EPS excludes dilution for potential common stock issuances and is computed by dividing basic net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of RSUs and stock options using the treasury stock method. Fair Value Measurements and Fair Value of Financial Instruments The FASB defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC 820 establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels as follows: Level 1—Unadjusted quoted prices for identical instruments in active markets. Level 1 assets and liabilities may include debt securities and equity securities that are traded in an active exchange market. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs may include observable market data such as closing market prices provided by independent pricing services after considering factors such as the yields or prices of comparable investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. In addition, pricing services may determine the fair value of equity securities traded principally in foreign markets when it has been determined that there has been a significant trend in the U.S. equity markets or in index futures trading. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. Recent Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-1"), which requires all equity investments (other than those accounted for under the equity method) to be measured at fair value with changes in the fair value recognized through net income. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and interim periods therein. Early adoption is not permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” ("ASU 2015-16) which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-3"), which changes the presentation of debt issuance costs in the balance sheet. The new guidance requires that debt issuance costs be presented as a deduction from the carrying amount of the related debt rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15 to amend ASU 2015-03 to address line-of-credit agreements. ASU 2015-15 allows entities to present debt issuance costs related to line-of-credit agreements as an asset and amortize deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires retrospective application for each prior period presented. Early adoption is permitted for financial statements that have not been previously issued. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. In July 2015, the FASB confirmed a deferral of the effective date by one year, with early adoption on the original effective date permitted. As deferred, ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has not yet adopted ASU 2014-09 and is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements. |
Goodwill and Other Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets, net are summarized as follows:
Activity in goodwill and intangible assets, net is as follows:
Definite-lived intangible asset amortization for the next five years is estimated as follows: 2016—$2.5 million, 2017—$0.8 million, 2018—$0.6 million, 2019—$0.5 million, 2020—$0.4 million, and thereafter—$1.3 million. At December 31, 2015, the weighted average estimated remaining amortization period for definite-lived intangible assets is 5.6 years. |
Business Combination |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On April 10, 2015, the Company made an investment of approximately $4.8 million for a majority ownership position in Virtus ETF Solutions (“VES”), formerly known as ETF Issuer Solutions. VES is a New York City-based company that operates a platform for listing, operating, and distributing exchange traded funds. The transaction was accounted for under ASC 805 Business Combinations. Goodwill of $1.4 million and other intangible assets of $2.4 million were recorded as a result of this transaction. The impact of this transaction was not material to the Company’s consolidated financial statements. |
Investments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments consist primarily of investments in our sponsored mutual funds. The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 17 and the assets of the consolidated investment product discussed in Note 18, at December 31, 2015 and 2014 were as follows:
Marketable Securities The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows:
For the years ended December 31, 2015, 2014 and 2013, the Company recognized a realized gain of $0.4 million, $8.2 million and $1.0 million, respectively, on trading securities. Equity Method Investments In 2014, the Company acquired an interest in a limited partnership for approximately $5.0 million which includes a future capital commitment for up to $4.9 million in the event that it is called by the partnership. On April 9, 2013, the Company acquired a 24% noncontrolling Euro-denominated equity interest in Kleinwort Benson Investors International, Ltd. (“KBII”), a subsidiary of Kleinwort Benson Investors (Dublin) (“KBID”) for €2.6 million or $3.4 million. KBII is a U.S. registered investment adviser that provides specialized equity strategies. In conjunction with this investment, the Company entered into a put and call option with KBID. This investment is translated into U.S. dollars at current exchange rates as of the end of each accounting period. Net income or loss of the noncontrolled affiliate is translated at average exchange rates in effect during the accounting period. Net translation exchange gains and losses are excluded from income and recorded in accumulated other comprehensive income. Nonqualified Retirement Plan Assets The Excess Incentive Plan allows certain employees to voluntarily defer compensation. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. Assets held in trust are included in investments and are carried at fair value in accordance with ASC 320; the associated obligations to participants are included in other liabilities in the Company’s Consolidated Balance Sheets. Other Investments Other investments represents interests in entities not accounted for under the equity method such as the cost method or fair value. |
Fair Value Measurements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 17 and 18, respectively, as of December 31, 2015 and December 31, 2014, by fair value hierarchy level were as follows:
The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value. Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1. Sponsored funds represent investments in open-end mutual funds, variable insurance funds and closed-end funds for which the Company acts as the investment manager. The fair value of open-end mutual funds and variable insurance funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds is determined based on the official closing price on the exchange they are traded on and are categorized as Level 1. Equity securities include securities traded on active markets and are valued at the official closing price (typically last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1. Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1. Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments. Transfers into and out of levels are reflected when significant inputs used for the fair value measurement, including market inputs or performance attributes, become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value no longer represents fair value. There were no transfers between Level 1 and Level 2 during the years ended December 31, 2015 and 2014. |
Furniture, Equipment and Leasehold Improvements, Net |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Furniture, Equipment and Leasehold Improvements, Net | Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements, net are summarized as follows:
|
Income Taxes |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of the provision for income taxes are as follows:
The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the years indicated:
The provision for income taxes reflects U.S. federal, state and local taxes at an estimated effective tax rate of 55%, 29% and 37% for the years ended December 31, 2015, 2014 and 2013, respectively. The Company's tax position for the years ended December 31, 2015 and 2014 was impacted by changes in the valuation allowance related to the unrealized loss position on the Company’s marketable securities. Additionally, the Company’s effective tax rate for the year ended December 31, 2014 was impacted by a net tax benefit of approximately $15.5 million due to the settlement of the Internal Revenue Service (“IRS”) examination of its 2011 federal consolidated corporate income tax return. The net benefit arises from the settlement of the Company's 2011 IRS exam and is comprised of the recognition of tax benefits from previously uncertain tax positions of approximately $31.0 million and a reduction in the available loss deduction of approximately $15.5 million of which both related to the past dissolution of a subsidiary. Deferred taxes resulted from temporary differences between the amounts reported in the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences are as follows:
At each reporting date, the Company evaluates the positive and negative evidence used to determine the likelihood of realization of its deferred tax assets. The Company maintained a valuation allowance in the amount of $10.9 million and $2.4 million at December 31, 2015 and 2014, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets. As of December 31, 2015, the Company had $40.3 million of net operating loss carry-forwards for federal income tax purposes. The related federal net operating loss carry-forwards are scheduled to begin to expire in the year 2029. As of December 31, 2015, the Company had state net operating loss carry-forwards, varying by subsidiary and jurisdiction, represented by a $6.5 million deferred tax asset. The state net operating loss carry-forwards are scheduled to begin to expire in 2016. Internal Revenue Code Section 382 limits tax deductions for net operating losses, capital losses and net unrealized built-in losses after there is a substantial change in ownership in a corporation’s stock involving a 50 percentage point increase in ownership by 5% or larger stockholders. During the year ended December 31, 2009, due to changes in the Company’s stockholder base, the Company incurred an ownership change as defined in Section 382. At December 31, 2015, the Company has approximately $62.3 million in pre-change built-in losses that are reflected within the Company’s deferred tax assets noted above and are subject to an annual limitation of $4.2 million plus any cumulative unused Section 382 limitation from post-change tax years. Activity in unrecognized tax benefits is as follows:
The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. The Company recorded no interest or penalties related to uncertain tax positions at December 31, 2015, 2014 and 2013. During the year ended December 31, 2015, the Company recognized tax benefits of $1.1 million related to cumulative windfall deductions on certain stock-based incentive plans. Under ASC 718, these tax benefits are utilized for financial statement purposes when they serve to reduce income taxes payable. Under the Company’s accounting policy, net operating losses and benefits from other sources are recognized before windfall benefit carryovers. The tax benefit related to these windfall deductions was recorded as an increase to stockholders’ equity in the Company's Consolidated Balance Sheets. The earliest federal tax year that remains open for examination is 2008 since unutilized net operating loss carry-forwards from 2008 could be denied when claimed in future years. The earliest open years in the Company’s major state tax jurisdictions are 2001 for Connecticut and 2011 for all of the Company's remaining state tax jurisdictions. |
Debt |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility The Company has an amended and restated senior secured revolving credit facility (the “Credit Facility”) that has a five-year term expiring in September 2017 and provides borrowing capacity of up to $75.0 million, with a $7.5 million sub-limit for the issuance of standby letters of credit. In addition, the Credit Facility provides for a $50.0 million increase in borrowing capacity conditioned on approval by the lending group. The Credit Facility is secured by substantially all of the assets of the Company. At December 31, 2015 and 2014, there were no amounts outstanding under the Credit Facility. As of December 31, 2015, the Company had the capacity to draw on the entire $75.0 million under the Credit Facility. Amounts outstanding under the Credit Facility bear interest at an annual rate equal to, at the Company’s option, either LIBOR for interest periods of one, two, three or six months or an alternate base rate (as defined in the Credit Facility agreement), plus, in each case, an applicable margin, that ranges from 0.75% to 2.50%. Under the terms of the Credit Facility, the Company is also required to pay certain fees, including an annual commitment fee that ranges from 0.35% to 0.50% on undrawn amounts and a letter of credit participation fee at an annual rate equal to the applicable margin as well as any applicable fronting fees, each of which is payable quarterly in arrears. The Credit Facility contains customary covenants, including covenants that restrict (subject in certain instances to minimum thresholds or exceptions) the ability of the Company and certain of its subsidiaries to incur additional indebtedness, create liens, merge or make acquisitions, dispose of assets, enter into leases, sale/leasebacks or acquisitions of capital stock, and make loans, guarantees and investments, among other things. In addition, the Credit Facility contains certain financial covenants, the most restrictive of which include: (i) a minimum interest coverage ratio (generally, adjusted EBITDA to interest expense as defined in and for the period specified in the Credit Facility agreement) of at least 4.00:1, and (ii) a leverage ratio (generally, total debt as of any date to adjusted EBITDA as defined in and for the period specified in the Credit Facility agreement) of no greater than 2.75:1. For purposes of the Credit Facility, adjusted EBITDA generally means, for any period, net income of the Company before interest expense, income taxes, depreciation and amortization expense, and excluding non-cash stock-based compensation, unrealized mark-to-market gains and losses, certain severance, and certain non-cash non-recurring gains and losses as described in and specified under the Credit Facility. At December 31, 2015 and 2014, the Company was in compliance with all financial covenants under the Credit Facility. The Credit Facility agreement also contains customary provisions regarding events of default which could result in an acceleration of amounts due under the facility. Such events of default include our failure to pay principal or interest when due, our failure to satisfy or comply with covenants, a change of control, the imposition of certain judgments, the invalidation of liens we have granted, and a cross-default to other debt obligations. |
Commitments and Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is regularly involved in litigation and arbitration as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve but are not limited to the Company’s activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Loss Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Based on information currently available, available insurance coverage and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods. Regulatory Matter As previously disclosed, in December 2014 the SEC announced a settlement with F-Squared Investments (“F-Squared”), an unaffiliated former subadviser, which settled charges that F-Squared had violated the federal securities laws as described in Investment Advisers Act Release No. 3988. The settlement related to F-Squared’s inaccurate performance information for the period of April 2001 through September 2008, including indices that certain Virtus mutual funds tracked beginning in September 2009 and January 2011. As part of the SEC’s non-public, confidential investigation of this matter, the SEC staff informed the Company that it was inquiring into whether the Company had violated securities laws or regulations with respect to F-Squared’s historical performance information. In November 2015, without admitting or denying the SEC’s findings, the Company consented to the entry of the order which found that the Company violated certain Sections of the Investment Advisers Act and the Investment Company Act of 1940. The Company agreed to pay a total of $16.5 million, which it paid in the fourth quarter of 2015. In re Virtus Investment Partners, Inc. Securities Litigation; formerly styled as Tom Cummins v. Virtus Investment Partners Inc. et al On February 20, 2015, a putative class action complaint alleging violation of the federal securities laws was filed by an individual shareholder against the Company and certain of the Company’s current officers (the “defendants”) in the United States District Court for the Southern District of New York. On April 21, 2015, three plaintiffs, including the original plaintiff, filed motions to be appointed lead plaintiff. On June 9, 2015, the court entered an order appointing Arkansas Teachers Retirement System lead plaintiff. On August 21, 2015, plaintiff filed a Consolidated Class Action Complaint (the “Consolidated Complaint”) amending the originally filed complaint. The Consolidated Complaint was purportedly filed on behalf of all purchasers of the Company’s common stock between January 25, 2013 and May 11, 2015 (the “Class Period”). The Consolidated Complaint alleges that during the Class Period, the defendants disseminated materially false and misleading statements and concealed material adverse facts relating to certain funds subadvised by F-Squared. The Consolidated Complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5. The plaintiff seeks to recover unspecified damages. The Company believes that the suit is without merit and intends to defend it vigorously. A motion to dismiss the Consolidated Complaint was filed on behalf of the Company and the other defendants on October 21, 2015. Briefing of the motion was completed on December 4, 2015 and oral argument was held on December 17, 2015. The motion is pending. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim. Mark Youngers v. Virtus Investment Partners, Inc. et al On May 8, 2015, a putative class action complaint alleging violations of certain provisions of the federal securities laws was filed in the United States District Court for the Central District of California by an individual who alleges he is a former shareholder of one of the Virtus mutual funds formerly subadvised by F-Squared and formerly known as the AlphaSector Funds. The complaint purports to allege claims against the Company, certain of the Company’s officers and affiliates, and certain other parties (the “defendants”). The complaint was purportedly filed on behalf of purchasers of the AlphaSector Funds between May 8, 2010 and December 22, 2014, inclusive (the “Class Period”). The complaint alleges that during the Class Period the defendants disseminated materially false and misleading statements and concealed or omitted material facts necessary to make the statements made not misleading. On June 7, 2015, a group of three individuals, including the original plaintiff, filed a motion to be appointed lead plaintiff. No other motions to be appointed lead plaintiff were filed. On July 27, 2015, the court granted the motion, appointing movants as lead plaintiff. On July 27, 2015, the court issued an order to show cause requiring lead plaintiff to explain no later than July 31, 2015, why his claims should not be transferred and consolidated with the In re Virtus Investment Partners, Inc. Securities Litigation action discussed above. On October 1, 2015, plaintiff filed a First Amended Class Action Complaint which, among other things, added a derivative claim for breach of fiduciary duty on behalf of Virtus Opportunities Trust. On October 19, 2015, The United States District Court for the Central District of California entered an order transferring the action to the Southern District of New York. On January 4, 2016, Plaintiffs filed a Second Amended Complaint. Defendant's filed a motion to dismiss on February 1, 2016. The Company believes the plaintiff’s claims asserted in the complaint are frivolous and intends to defend it vigorously. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim. Lease Commitments The Company incurred rental expenses, primarily related to office space, under operating leases of $4.3 million, $3.7 million and $3.4 million in 2015, 2014 and 2013, respectively. Minimum aggregate rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2015 are as follows: $4.8 million in 2016; $5.0 million in 2017; $4.5 million in 2018; $2.9 million in 2019; $2.4 million in 2020; and $3.2 million thereafter. |
Equity Transactions |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity Transactions | Equity Transactions During the years ended December 31, 2015 and 2014, pursuant to the Company’s share repurchase program implemented in the fourth quarter of 2010, the Company repurchased 638,703 and 225,441 common shares, respectively, at a weighted average price of $125.22 per share and $178.54 per share, respectively, plus transaction costs for a total cost of approximately $80.0 million and $40.3 million, respectively. As of December 31, 2015, the Company has repurchased a total of 1,214,144 shares of common stock at a weighted average price of $129.85 per share plus transaction costs for a total cost of $157.7 million. On October 21, 2015, the Company's board of directors authorized an additional 1,500,000 shares of common stock under the current share repurchase program and at December 31, 2015 1,485,856 shares remain available for repurchase. Under terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time. During each quarter of the year ended December 31, 2015 and the second, third and fourth quarters of the year ended December 31, 2014, the Board of Directors declared quarterly cash dividends of $0.45 each. Total dividends declared were $16.0 million for the year ended December 31, 2015 and $12.5 million for the year ended December 31, 2014. At December 31, 2015, $4.2 million is shown as dividends payable in liabilities in the Consolidated Balance Sheet, primarily representing the fourth quarter dividend to be paid on February 12, 2016 to all shareholders of record on January 29, 2016. There were no cash dividends during the year ended December 31, 2013. |
Accumulated Other Comprehensive Income |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in accumulated other comprehensive loss, by component, are as follows:
|
Retirement Savings Plan |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Savings Plan | Retirement Savings Plan The Company sponsors a defined contribution 401(k) retirement plan (the “401(k) Plan”) covering all employees who meet certain age and service requirements. Employees may contribute a percentage of their eligible compensation into the 401(k) Plan, subject to certain limitations imposed by the Internal Revenue Code. The Company matches employees’ contributions at a rate of 100% of employees’ contributions up to the first 3.0% and 50.0% of the next 2.0% of the employees’ compensation contributed to the 401(k) Plan. The Company’s matching contributions were $2.1 million, $2.8 million and $2.5 million in 2015, 2014 and 2013, respectively. |
Stock-Based Compensation |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which officers, employees and directors may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At December 31, 2015, 322,986 shares of common stock remain available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs generally have a term of one to three years and may be time-vested or performance-contingent. Stock options generally cliff vest after three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Shares that are issued upon exercise of stock options and vesting of RSUs are newly issued shares from the Plan and are not issued from treasury stock. Stock-based compensation expense is summarized as follows:
RSU activity for the year ended December 31, 2015 is summarized as follows:
The grant-date intrinsic value of RSUs granted during the year ended December 31, 2015 was $15.9 million. The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2015, 2014 and 2013 was $134.37, $183.83 and $188.36 per share, respectively. The total fair value of RSUs vested during the years ended December 31, 2015, 2014 and 2013 was $11.8 million, $21.1 million and $17.9 million, respectively. For the years ended December 31, 2015, 2014 and 2013, a total of 37,488, 50,952 and 38,222 RSUs, respectively, were withheld through net share settlement by the Company to settle minimum employee tax withholding obligations. The Company paid $5.1 million, $9.1 million and $7.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, in minimum employee tax withholding obligations related to RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting. As of December 31, 2015, unamortized stock-based compensation expense for outstanding RSUs was $16.7 million, with a weighted average remaining contractual life of 1.7 years. As of December 31, 2014, unamortized stock-based compensation expense for outstanding RSUs was $12.6 million, with weighted average remaining contractual life of 1.1 years. The Company did not capitalize any stock-based compensation expenses during the years ended December 31, 2015, 2014 and 2013. There were no unvested stock options at December 31, 2015. During the years ended December 31, 2015 and 2014, the Company granted 33,632 and 30,101 RSUs, respectively, each of which contains two performance based metrics in addition to a service condition. The two performance metrics are based on the Company’s growth in operating income, as adjusted, relative to peers over a one year period and total shareholder return (“TSR”) relative to peers over a three year period. For the years ended December 31, 2015 and 2014, total stock-based compensation expense included $2.5 million and $1.4 million respectively, for these performance contingent RSUs. As of December 31, 2015, unamortized stock-based compensation expense related to these performance contingent RSUs was $6.2 million. As of December 31, 2014, unamortized stock-based compensation expense related to these performance contingent RSUs was $3.5 million. Compensation expense for these performance contingent awards is recognized over the three year service period based upon the value determined under the intrinsic value method for the growth in operating income, as adjusted portion of the awards and the Monte Carlo simulation valuation model for the TSR portion of the awards since it represents a market condition. Compensation expense for the TSR portion of the awards is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the TSR performance metric. Compensation expense for the growth in operating income, as adjusted, portion of the awards is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon the final outcome. Stock option activity for the year ended December 31, 2015 is summarized as follows:
The weighted-average remaining contractual term for stock options outstanding at December 31, 2015 and December 31, 2014 was 2.9 and 3.9 years, respectively. The weighted-average remaining contractual term for stock options vested and exercisable at December 31, 2015 was 2.9 years. At December 31, 2015, the aggregate intrinsic value of stock options outstanding and vested and exercisable was $15.5 million. The total grant-date fair value of stock options vested during the years ended December 31, 2014 and 2013 was $0.4 million and $0.2 million, respectively. There were no options vested during the year ended December 31, 2015. The total intrinsic value of stock options exercised for the years ended December 31, 2015, 2014 and 2013 was $0.7 million, $4.2 million, $5.1 million, respectively. Cash received from stock option exercises was $0.1 million, $0.8 million and $0.6 million for 2015, 2014 and 2013, respectively. Employee Stock Purchase Plan The Company offers an employee stock purchase plan that allows employees to purchase shares of common stock on the open market at market price through after-tax payroll deductions. The initial transaction fees are paid for by the Company and shares of common stock are purchased on a quarterly basis. The Company does not reserve shares for this plan or discount the purchase price of the shares. |
Earnings Per Share |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share is as follows:
For the years ended December 31, 2015 and 2014, there were 1,521 and 6,085 instruments, respectively, excluded from the above computations of weighted-average shares for diluted EPS because the effect would be anti-dilutive. For the year ended December 31, 2013, there were no instruments excluded from the above computations of weighted-average shares for diluted EPS because the effect would be anti-dilutive. |
Concentration of Credit Risk |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk The concentration of credit risk with respect to advisory fees receivable is generally limited due to the short payment terms extended to clients by the Company. The following funds provided 10 percent or more of the total revenues of the Company:
|
Consolidated Sponsored Investment Products |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Sponsored Investment Products | Consolidated Sponsored Investment Products Sponsored Investment Products In the normal course of its business, the Company sponsors various investment products. The Company consolidates, as a consolidated sponsored investment product, an investment product when it owns a majority of the voting interest in the entity or it is the primary beneficiary of an investment product that is a VIE. The consolidation and deconsolidation of these investment products have no impact on net income attributable to stockholders. The Company’s risk with respect to these investments is limited to its investment in these products. The Company has no right to the benefits from, and does not bear the risks associated with these investment products, beyond the Company’s investments in, and fees generated from these products. The Company does not consider cash and investments held by consolidated sponsored investment products or any other VIE to be assets of the Company other than its direct investment in these products. As of December 31, 2015 and December 31, 2014, the Company consolidated twelve sponsored investment products, respectively. During the year ended December 31, 2015, the Company consolidated three additional sponsored investment products and deconsolidated three sponsored investment products because it no longer has a majority voting interest. The following table presents the balances of the consolidated sponsored investment products that were reflected in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
Fair Value Measurements of Consolidated Sponsored Investment Products The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis by fair value hierarchy level were as follows:
The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value. Investments of consolidated sponsored investment products represent the underlying debt, equity and other securities held in sponsored products, which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.
For the year ended December 31, 2015, securities held by consolidated sponsored investment products with an end of period value of $8.4 million were transferred from Level 2 to Level 1 because certain non-US securities quoted market prices were no longer adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. Securities with an end of period market value of $0.2 million and $1.5 million were transferred from Level 1 to Level 2 during the years ended December 31, 2015 and December 31, 2014, respectively, because certain non-US securities' quoted market prices were adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market or an exchange price for preferred shares was no longer available. Derivatives The Company has certain consolidated sponsored investment products which include derivative instruments as part of their investment strategies to contribute to the achievement of defined investment objectives. These derivatives may include futures contracts, swaps contracts, options contracts and forward contracts. Derivative instruments in an asset position are classified as other assets of consolidated sponsored investment products in the Consolidated Balance Sheets. Derivative instruments in a liability position are classified as liabilities of consolidated sponsored investment products within the Consolidated Balance Sheets. The change in fair value of such derivatives is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, in the Consolidated Statements of Operations. In connection with entering into these derivative contracts, these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Consolidated Balance Sheets of the Company as Cash pledged or on deposit of consolidated sponsored investment products. The fair value of such derivatives at December 31, 2014 was immaterial. The Company's consolidated sponsored investment products were party to the following derivative instruments for the year ended December 31, 2015:
(a) Represents average premiums paid for the period. (b) Represents average premiums received for the period. (c) Represents average unrealized gains/losses for the period. (d) Represents average value payable at trade date. (e) Represents average value at receivable at settlement date. (f) Represents notional value of holdings as of the end of the period.
The following is a summary of the consolidated sponsored investment products' derivative instruments as of December 31, 2015. For financial reporting purposes, the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Consolidated Balance Sheets.
The following is a summary of the Company's consolidated sponsored investment products' assets and liabilities, net of amounts available for offset under a master netting arrangement and net of any related cash collateral received:
The Company's consolidated sponsored investment products have counterparty risk associated with these derivative assets and liabilities. Multiple counterparties are utilized to mitigate this risk, and the maximum exposure to a single bank does not exceed 33.1% of the total derivative assets or 43.3% of the total derivative liabilities. The following is a summary of the net gains (losses) recognized in income by primary risk exposure:
Short Sales Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a security is sold, which is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded in the Consolidated Balance Sheets within other liabilities of consolidated sponsored investment products. Borrowings One of the Company’s consolidated sponsored investment products employs leverage in the form of using proceeds from short sales, which allows it to use its long positions as collateral in order to purchase additional securities. The use of these proceeds from short sales is secured by the assets of the consolidated sponsored investment product, which are held with the custodian in a separate account. This consolidated sponsored investment product is permitted to borrow up to 33.33% of its total assets. |
Consolidated Investment Product |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Investment Product | Consolidated Investment Product During 2015, the Company contributed $40.0 million to a SPE that was created specifically to accumulate bank loan assets for securitization as a potential CLO that will be managed by its Newfleet affiliate. The SPE is a VIE and the Company consolidates the SPE's assets and liabilities as a consolidated investment product within its financial statements as it is the primary beneficiary of the VIE. The Company determined that it is the primary beneficiary of the VIE as the Company has the power to direct the activities that most significantly impact the economic performance of th entity and has the obligation to absorb losses, or the rights to receive benefits from, the VIE that could potentially be significant to the VIE. The following table presents the balances of the consolidated investment product that were reflected in the Consolidated Balance Sheet as of December 31, 2015. There was no consolidated investment product at December 31, 2014.
Fair Value Measurements of Consolidated Investment Product The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of December 31, 2015 by fair value hierarchy level were as follows:
The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated investment product measured at fair value. Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1. Bank loans represent the underlying debt securities held in the sponsored product which are consolidated by the Company. Bank loan investments include debt securities, which are valued based on quotations received from an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. The estimated fair value of debt at December 31, 2015, which has a variable interest rate, approximates its carrying value and is classified as Level 2. The securities purchase payable at December 31, 2015 approximates fair value due to the short-term nature of the instruments. Debt of Consolidated Investment Product On August 17, 2015, the SPE, entered into a three-year term $160.0 million financing transaction with a bank lending counterparty (the “Financing Facility”). The proceeds of the Financing Facility are intended to be used to purchase and warehouse commercial bank loan assets pending the securitization of such assets as a CLO. The size of the Financing Facility may be increased subject to the occurrence of certain events and the mutual consent of the parties. The Financing Facility is secured by all the assets of the SPE and initially bears interest at a rate of three-month LIBOR plus 1.25% per annum (with such interest rate, upon completion of the initial nine-month ramp-up period, increasing to three-month LIBOR plus 2.0% per annum). The Financing Facility contains standard covenants and event of default provisions (including loan-to-value ratio triggers) and foreclosure remedies upon such default in favor of the lender thereunder. The $40.0 million the Company contributed to the SPE serves as first loss protection for the bank lending counterparty under the Financing Facility. In the event of default, the recourse to the Company is limited to its investment in the SPE. At December 31, 2015 $152.6 million was outstanding under the Financing Facility. |
Consolidation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | Consolidation As of December 31, 2015, 13 products were consolidated by the Company including, 12 consolidated sponsored investment products and one consolidated investment product. As of December 31, 2014, 12 products were consolidated by the Company, comprised entirely of sponsored investment products. The following tables reflect the impact of the consolidated sponsored investment products and consolidated investment product in the Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014, respectively:
The following table reflects the impact of the consolidated sponsored investment products in the Consolidated Statement of Operations for the years ended December 31, 2015, 2014 and 2013, respectively:
|
Subsequent Event |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 17, 2016, the Company declared a quarterly cash dividend of $0.45 per common share to be paid on May 13, 2016 to shareholders of record at the close of business on April 29, 2016. |
Selected Quarterly Data (Unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Data (Unaudited) | Selected Quarterly Data (Unaudited)
|
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest, referred to as consolidated sponsored investment products or consolidated investment product. The Company is considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Notes 17, 18 and 19 for additional information related to the consolidation of sponsored investment products and the consolidated investment product. Intercompany accounts and transactions have been eliminated. |
Consolidation, Variable Interest Entities | The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power through voting or similar rights to direct the activities that most significantly impact the entity’s economic performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If any entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. certain of the Company’s affiliates serve as the collateral manager for other collateralized loan and collateralized bond obligations (collectively, “CDOs”). These CDOs’ assets and liabilities reside in bankruptcy remote, special purpose entities in which the Company has no ownership in, nor holds any notes issued by, the CDOs and provides neither recourse nor guarantees. Accordingly, the Company’s financial exposure to these CDOs is limited only to the collateral investment management fees it earns These CDOs are also considered VIEs, and as a result, the Company is required to consider the nature of its involvement in these VIEs in determining if it should consolidate the entity. In assessing consolidation of these CDOs, the Company assessed whether the collateral management fees represented a variable interest and the Company was the primary beneficiary of the VIE. The primary beneficiary assessment includes an analysis of the rights of the Company in its capacity as collateral manager and an analysis of whether the Company could receive significant benefits or absorb significant losses from these CDOs. The Company determined that its investment management fees received as collateral manager for these CDOs did not represent a variable interest due to the anticipated fees being fixed in nature, senior to interest and principal payments, and any subordinated fee elements were insignificant relative to the total fee and total anticipated economic performance of these CDOs. |
Noncontrolling Interest | Noncontrolling interests represent the profit or loss attributed to third-party investors in consolidated sponsored investment products and other affiliates. Movements in amounts attributable to noncontrolling interests in consolidated entities on the Company’s Consolidated Statements of Operations offset the operating results, gains and losses and interest expense of the third-party investors. Noncontrolling interests related to certain consolidated sponsored investment products are classified as redeemable noncontrolling interests because investors in these funds may request withdrawals at any time. |
Use of Estimates | The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management believes the estimates used in preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Segment Information | Accounting Standards Codification (“ASC”) 280, Segment Reporting, establishes disclosure requirements relating to operating segments in annual and interim financial statements. Business or operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates in one business segment, namely as an asset manager providing investment management and distribution services for individual and institutional clients. The Company’s Chief Executive Officer is the Company’s chief operating decision maker. Although the Company provides disclosures regarding assets under management and other asset flows by product, the Company’s determination that it operates in one business segment is based on the fact that the same investment and operational resources support multiple products, such products have the same or similar regulatory framework and the Company’s chief operating decision maker reviews the Company’s financial performance at a consolidated level. Investment organizations within the Company are generally not aligned with specific product lines. Furthermore, investment professionals manage both retail and institutional products. |
Cash and Cash Equivalents | Cash and cash equivalents consist of cash in banks and money market fund investments. |
Marketable Securities | which are carried at fair value in accordance with ASC 320, Investments—Debt and Equity Securities (“ASC 320”). Marketable securities are marked to market based on the respective publicly quoted net asset values of the funds or market prices of the equity securities or bonds. Marketable securities transactions are recorded on a trade date basis. Any unrealized appreciation or depreciation on available-for-sale securities, net of income taxes, is reported as a component of accumulated other comprehensive income in equity attributable to stockholders. On a quarterly basis, the Company conducts a review to assess whether other-than-temporary impairments exist on its available-for-sale marketable securities. Other-than-temporary declines in value may exist if the fair value of a marketable security has been below the carrying value for an extended period of time. If an other-than-temporary decline in value is determined to exist, the unrealized investment loss, net of tax, is recognized in the Consolidated Statements of Operations in the period in which the other-than-temporary decline in value occurs, as well as an accompanying permanent adjustment to accumulated other comprehensive income. |
Equity Method Investments | The Company’s investment in noncontrolled entities, where the Company does not hold a controlling financial interest but has the ability to significantly influence operating and financial matters, is accounted for under the equity method of accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures. Under the equity method of accounting, the Company’s share of the noncontrolled entities net income or loss is recorded in other income (expense), net in the accompanying Consolidated Statements of Operations. Distributions received reduce the Company’s investment balance. The investment is evaluated for impairment as events or changes indicate that the carrying amount exceeds its fair value. If the carrying amount of an investment does exceed its fair value and the decline in fair value is deemed to be other-than-temporary, an impairment charge will be recorded. |
Non-qualified Retirement Plan Assets and Liabilities | The Company has a non-qualified retirement plan (the “Excess Incentive Plan”) that allows certain employees to voluntarily defer compensation. Under the Excess Incentive Plan, participants elect to defer a portion of their compensation, which the Company then contributes into a trust. Each participant is responsible for designating investment options for assets they contribute, and the ultimate distribution paid to each participant reflects any gains or losses on the assets realized while in the trust. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. Assets held in trust, which are considered trading securities, are included in investments and are carried at fair value in accordance with ASC 820 Fair Value Measurement; the associated obligations to participants are included in other liabilities in the Company’s Consolidated Balance Sheets and approximate the fair value of the associated assets. Assets held in trust consist of mutual funds and are recorded at fair value, utilizing Level 1 valuation techniques. |
Deferred Commissions | Deferred commissions, which are included in other assets in the Company's Consolidated Balance Sheets, are commissions paid to broker-dealers on sales of mutual fund shares. Deferred commissions are recovered by the receipt of monthly asset-based distributor fees from the mutual funds or contingent deferred sales charges received upon redemption of shares within one to five years, depending on the fund share class. The deferred costs resulting from the sale of shares are amortized on a straight-line basis over a one to five-year period, depending on the fund share class, or until the underlying shares are redeemed. Deferred commissions are periodically assessed for impairment and additional amortization expense is recorded, as appropriate. |
Furniture, Equipment and Leasehold Improvements, Net | Furniture, equipment and leasehold improvements are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of three to seven years for furniture and office equipment, and three to five years for computer equipment and software. Leasehold improvements are depreciated over the shorter of the remaining estimated lives of the related leases or useful lives of the improvements. Major renewals or betterments are capitalized, and recurring repairs and maintenance are expensed as incurred. Leasehold improvements that are funded upfront by a landlord and are constructed for the benefit of the Company are recorded at cost and depreciated on a straight-line basis over the original minimum term of the lease and a corresponding lease incentive liability in the same amount is also recorded and initially amortized over the same period. |
Leases | The Company currently leases office space and equipment under various leasing arrangements. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements are classified as operating leases and contain renewal options, rent escalation clauses or other inducements provided by the lessor. Rent expense under non-cancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. Build-out allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the effective date of the lease. |
Intangible Assets and Goodwill | Definite-lived intangible assets are comprised of acquired investment advisory contracts. These assets are amortized on a straight-line basis over the estimated useful lives of such assets, which range from one to sixteen years. Definite-lived intangible assets are evaluated for impairment on an ongoing basis under GAAP whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be fully recoverable. The Company determines if impairment has occurred by comparing estimates of future undiscounted cash flows to the carrying value of assets. Assets are considered impaired, and impairment is recorded, if the carrying value exceeds the expected future undiscounted cash flows. Goodwill represents the excess of the purchase price of acquisitions and mergers over the identified net assets and liabilities acquired. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not being amortized. A single reporting unit has been identified for the purpose of assessing potential future impairments of goodwill. An impairment analysis of goodwill is performed annually or more frequently, if warranted by events or changes in circumstances affecting the Company’s business. The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2011-08, Testing Goodwill for Impairment, which states that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company’s 2015 and 2014 annual goodwill impairment analysis did not result in any impairment charges. Indefinite-lived intangible assets are comprised of closed-end and exchange traded fund investment advisory contracts. These assets are tested for impairment annually and when events or changes in circumstances indicate the assets might be impaired. The Company follows ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which provides entities with an option to perform a qualitative assessment of indefinite-lived intangible assets other than goodwill for impairment to determine if additional impairment testing is necessary. The Company’s 2015 and 2014 annual indefinite-lived intangible assets impairment analyses did not result in any impairment charges. |
Treasury Stock | Treasury stock is accounted for under the cost method and is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Upon any subsequent resale, the treasury stock account is reduced by the cost of such stock. |
Revenue Recognition | Investment management fees, distribution and service fees and administration and transfer agent fees are recorded as revenues during the period in which services are performed. Investment management fees are earned based upon a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payment. The Company accounts for investment management fees in accordance with ASC 605, Revenue Recognition, and has recorded its management fees net of fees paid to unaffiliated subadvisers. The Company considers the nature of its contractual arrangements in determining whether to recognize revenue based on the gross amount billed or net amount retained. The Company has evaluated the factors in ASC 605-45 in determining whether to record revenue on a gross or net basis with significant weight placed on: (i) whether the Company is the primary obligor in the arrangement; and (ii) whether the Company has latitude in establishing price. Distribution and service fees are earned based on a percentage of assets under management and are paid monthly pursuant to the terms of the respective distribution and service fee contracts. Underwriter fees are sales-based charges on sales of certain class A-share mutual funds. Administration and transfer agent fees consist of fund administration fees, transfer agent fees and fiduciary fees. Fund administration and transfer agent fees are earned based on the average daily assets in the funds. Other income and fees consist primarily of redemption income on the early redemption of certain share classes of mutual funds. |
Advertising and Promotion | Advertising and promotional costs include print advertising and promotional items and are expensed as incurred. These costs are classified in other operating expenses in the Consolidated Statements of Operations. |
Stock-based Compensation | The Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for share-based awards based on the estimated fair value on the date of grant. Restricted stock units (“RSUs”) are stock awards that entitle the holder to receive shares of the Company’s common stock as the award vests over time or when certain performance targets are achieved. The fair value of each RSU award is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Compensation expense for RSU awards is recognized ratably over the vesting period on a straight-line basis. |
Income Taxes | The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of the amount of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events that have been included in the Company’s financial statements or tax returns. Deferred tax liabilities and assets result from temporary differences between the book value and tax basis of the Company’s assets, liabilities and carry-forwards, such as net operating losses or tax credits. The Company’s methodology for determining the realizability of deferred tax assets includes consideration of taxable income in prior carryback year(s) if carryback is permitted under the tax law, as well as consideration of the reversal of deferred tax liabilities that are in the same period and jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The Company’s methodology also includes estimates of future taxable income from its operations, as well as the expiration dates and amounts of carry-forwards related to net operating losses and capital losses. These estimates are projected through the life of the related deferred tax assets based on assumptions that the Company believes to be reasonable and consistent with demonstrated operating results. Changes in future operating results not currently forecasted may have a significant impact on the realization of deferred tax assets. Valuation allowances are provided when it is determined that it is more likely than not that the benefit of deferred tax assets will not be realized. |
Comprehensive Income | The Company reports all changes in comprehensive income in the Consolidated Statements of Changes in Stockholders’ Equity and the Consolidated Statements of Comprehensive Income. Comprehensive income includes net income (loss), foreign currency translation adjustments (net of tax) and unrealized gains and losses on investments classified as available-for-sale (net of tax). |
Earnings per Share | Earnings per share (“EPS”) is calculated in accordance with ASC 260, Earnings per Share. Basic EPS excludes dilution for potential common stock issuances and is computed by dividing basic net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of RSUs and stock options using the treasury stock method. |
Fair Value Measurements and Fair Value of Financial Instruments | The FASB defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC 820 establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels as follows: Level 1—Unadjusted quoted prices for identical instruments in active markets. Level 1 assets and liabilities may include debt securities and equity securities that are traded in an active exchange market. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs may include observable market data such as closing market prices provided by independent pricing services after considering factors such as the yields or prices of comparable investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. In addition, pricing services may determine the fair value of equity securities traded principally in foreign markets when it has been determined that there has been a significant trend in the U.S. equity markets or in index futures trading. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value. Investments of consolidated sponsored investment products represent the underlying debt, equity and other securities held in sponsored products, which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated investment product measured at fair value. Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1. Bank loans represent the underlying debt securities held in the sponsored product which are consolidated by the Company. Bank loan investments include debt securities, which are valued based on quotations received from an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. |
Recent Accounting Pronouncements | In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-1"), which requires all equity investments (other than those accounted for under the equity method) to be measured at fair value with changes in the fair value recognized through net income. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and interim periods therein. Early adoption is not permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” ("ASU 2015-16) which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-3"), which changes the presentation of debt issuance costs in the balance sheet. The new guidance requires that debt issuance costs be presented as a deduction from the carrying amount of the related debt rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15 to amend ASU 2015-03 to address line-of-credit agreements. ASU 2015-15 allows entities to present debt issuance costs related to line-of-credit agreements as an asset and amortize deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires retrospective application for each prior period presented. Early adoption is permitted for financial statements that have not been previously issued. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. The Company believes the adoption of this standard will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. In July 2015, the FASB confirmed a deferral of the effective date by one year, with early adoption on the original effective date permitted. As deferred, ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has not yet adopted ASU 2014-09 and is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements. |
Fair Value Measurements, Transfers | Transfers into and out of levels are reflected when significant inputs used for the fair value measurement, including market inputs or performance attributes, become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value no longer represents fair value. |
Derivatives | The Company has certain consolidated sponsored investment products which include derivative instruments as part of their investment strategies to contribute to the achievement of defined investment objectives. These derivatives may include futures contracts, swaps contracts, options contracts and forward contracts. Derivative instruments in an asset position are classified as other assets of consolidated sponsored investment products in the Consolidated Balance Sheets. Derivative instruments in a liability position are classified as liabilities of consolidated sponsored investment products within the Consolidated Balance Sheets. The change in fair value of such derivatives is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, in the Consolidated Statements of Operations. In connection with entering into these derivative contracts, these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Consolidated Balance Sheets of the Company as Cash pledged or on deposit of consolidated sponsored investment products. |
Short Sales | Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a security is sold, which is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded in the Consolidated Balance Sheets within other liabilities of consolidated sponsored investment products. |
Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Goodwill and Intangible Assets, Net | Intangible assets, net are summarized as follows:
Activity in goodwill and intangible assets, net is as follows:
|
Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investments | The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 17 and the assets of the consolidated investment product discussed in Note 18, at December 31, 2015 and 2014 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | The composition of the Company’s marketable securities is summarized as follows:
|
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 17 and 18, respectively, as of December 31, 2015 and December 31, 2014, by fair value hierarchy level were as follows:
The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis by fair value hierarchy level were as follows:
The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of December 31, 2015 by fair value hierarchy level were as follows:
|
Furniture, Equipment and Leasehold Improvements, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Furniture, Equipment and Leasehold Improvements, Net | Furniture, equipment and leasehold improvements, net are summarized as follows:
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Provision (Benefit) for Income Taxes | The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the years indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Tax Effects of Temporary Differences | The tax effects of temporary differences are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Unrecognized Tax Benefits | Activity in unrecognized tax benefits is as follows:
|
Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss, by component, are as follows:
|
Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock-Based Compensation Expense | Stock-based compensation expense is summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Units Activity | RSU activity for the year ended December 31, 2015 is summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | Stock option activity for the year ended December 31, 2015 is summarized as follows:
|
Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows:
|
Concentration of Credit Risk (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Funds Provided Ten Percent or More of Total Revenues | The following funds provided 10 percent or more of the total revenues of the Company:
|
Consolidated Sponsored Investment Products (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances of Consolidated Sponsored Investment Products | The following table presents the balances of the consolidated sponsored investment products that were reflected in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 17 and 18, respectively, as of December 31, 2015 and December 31, 2014, by fair value hierarchy level were as follows:
The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis by fair value hierarchy level were as follows:
The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of December 31, 2015 by fair value hierarchy level were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation | The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | The Company's consolidated sponsored investment products were party to the following derivative instruments for the year ended December 31, 2015:
(a) Represents average premiums paid for the period. (b) Represents average premiums received for the period. (c) Represents average unrealized gains/losses for the period. (d) Represents average value payable at trade date. (e) Represents average value at receivable at settlement date. (f) Represents notional value of holdings as of the end of the period.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Offsetting Assets | The following is a summary of the consolidated sponsored investment products' derivative instruments as of December 31, 2015. For financial reporting purposes, the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Consolidated Balance Sheets.
The following is a summary of the Company's consolidated sponsored investment products' assets and liabilities, net of amounts available for offset under a master netting arrangement and net of any related cash collateral received:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Offsetting Liabilities | The following is a summary of the consolidated sponsored investment products' derivative instruments as of December 31, 2015. For financial reporting purposes, the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Consolidated Balance Sheets.
The following is a summary of the Company's consolidated sponsored investment products' assets and liabilities, net of amounts available for offset under a master netting arrangement and net of any related cash collateral received:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Net Gains (Losses) | The following is a summary of the net gains (losses) recognized in income by primary risk exposure:
|
Consolidated Investment Product (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances of Consolidated Investment Product | The following table presents the balances of the consolidated investment product that were reflected in the Consolidated Balance Sheet as of December 31, 2015. There was no consolidated investment product at December 31, 2014.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 17 and 18, respectively, as of December 31, 2015 and December 31, 2014, by fair value hierarchy level were as follows:
The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis by fair value hierarchy level were as follows:
The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of December 31, 2015 by fair value hierarchy level were as follows:
|
Consolidation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | The following tables reflect the impact of the consolidated sponsored investment products and consolidated investment product in the Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014, respectively:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations | The following table reflects the impact of the consolidated sponsored investment products in the Consolidated Statement of Operations for the years ended December 31, 2015, 2014 and 2013, respectively:
|
Selected Quarterly Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Selected Quarterly Data |
|
Goodwill and Other Intangible Assets - Summary of Intangible Assets, Net (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|
Definite-lived intangible assets, net: | ||||
Investment contracts | $ 158,747 | $ 158,747 | ||
Accumulated amortization | (152,676) | (149,380) | ||
Definite-lived intangible assets, net | 6,071 | 9,367 | ||
Indefinite-lived intangible assets | 34,816 | 32,416 | ||
Total intangible assets, net | $ 40,887 | $ 41,783 | $ 44,633 | $ 48,711 |
Goodwill and Other Intangible Assets - Schedule of Activity in Goodwill and Intangible Assets, Net (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Intangible assets, net | |||
Balance, beginning of period | $ 41,783 | $ 44,633 | $ 48,711 |
Acquisition | 2,400 | 1,075 | 356 |
Amortization expense | (3,296) | (3,925) | (4,434) |
Balance, end of period | 40,887 | 41,783 | 44,633 |
Goodwill | |||
Balance, beginning of period | 5,260 | 5,260 | 5,260 |
Acquisition | 1,441 | 0 | 0 |
Balance, end of period | $ 6,701 | $ 5,260 | $ 5,260 |
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 | $ 2.5 |
2017 | 0.8 |
2018 | 0.6 |
2019 | 0.5 |
2020 | 0.4 |
Thereafter | $ 1.3 |
Weighted average estimated remaining amortization period | 5 years 7 months 6 days |
Business Combination (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Apr. 10, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Business Acquisition [Line Items] | ||||
Investment to acquire majority interest | $ 5,000 | |||
Goodwill recorded | $ 1,441 | $ 0 | $ 0 | |
Virtus ETF Solutions [Member] | ||||
Business Acquisition [Line Items] | ||||
Investment to acquire majority interest | $ 4,800 | |||
Goodwill recorded | 1,400 | |||
Other intangible assets recorded | $ 2,400 |
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Investments Schedule [Abstract] | ||
Marketable securities | $ 41,496 | $ 50,251 |
Equity method investments | 9,007 | 7,209 |
Nonqualified retirement plan assets | 5,310 | 5,063 |
Other investments | 925 | 925 |
Total investments | $ 56,738 | $ 63,448 |
Investments - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Available-for-sale: | ||
Cost | $ 43,956 | $ 50,629 |
Unrealized Loss | (2,885) | (1,353) |
Unrealized Gain | 425 | 975 |
Fair Value | 41,496 | 50,251 |
Sponsored funds [Member] | ||
Trading: | ||
Cost | 31,167 | 39,079 |
Unrealized Loss | (2,134) | (1,190) |
Unrealized Gain | 298 | 423 |
Fair Value | 29,331 | 38,312 |
Equity securities [Member] | ||
Trading: | ||
Cost | 9,434 | 8,421 |
Unrealized Loss | (386) | 0 |
Unrealized Gain | 120 | 319 |
Fair Value | 9,168 | 8,740 |
Sponsored closed-end funds [Member] | ||
Available-for-sale: | ||
Cost | 3,355 | 3,129 |
Unrealized Loss | (365) | (163) |
Unrealized Gain | 7 | 233 |
Fair Value | $ 2,997 | $ 3,199 |
Investments - Additional Information (Detail) € in Millions, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Apr. 09, 2013
USD ($)
|
Apr. 09, 2013
EUR (€)
|
|
Investment [Line Items] | |||||
Realized gain on trading securities | $ 0.4 | $ 8.2 | $ 1.0 | ||
Interest acquired in limited partnership | 5.0 | ||||
Percentage of noncontrolling equity interest acquired | 50.00% | ||||
Maximum [Member] | |||||
Investment [Line Items] | |||||
Future capital commitment | $ 4.9 | ||||
Kleinwort Benson Investors International, Ltd. [Member] | |||||
Investment [Line Items] | |||||
Percentage of noncontrolling equity interest acquired | 24.00% | 24.00% | |||
Noncontrolling equity interest acquired, amount | $ 3.4 | € 2.6 |
Fair Value Measurements - Additional Information (Detail) - USD ($) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Fair value, equity, Level 1 to Level 2 transfers, amount | $ 0 | $ 0 |
Furniture, Equipment and Leasehold Improvements, Net (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Furniture and office equipment | $ 5,840 | $ 4,762 |
Computer equipment and software | 6,600 | 6,148 |
Leasehold improvements | 11,071 | 8,454 |
Furniture, equipment and leasehold improvements, gross | 23,511 | 19,364 |
Accumulated depreciation and amortization | (14,395) | (12,171) |
Furniture, equipment and leasehold improvements, net | $ 9,116 | $ 7,193 |
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Current | |||
Federal | $ 28,077 | $ 31,787 | $ 10,395 |
State | 2,539 | 3,168 | 1,787 |
Total current tax expense | 30,616 | 34,955 | 12,182 |
Deferred | |||
Federal | 4,339 | 3,200 | 29,933 |
State | 2,017 | 1,194 | 2,663 |
Total deferred tax expense | 6,356 | 4,394 | 32,596 |
Income tax expense | $ 36,972 | $ 39,349 | $ 44,778 |
Income Taxes - Summary of Tax Effects of Temporary Differences (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets: | ||
Intangible assets | $ 27,728 | $ 36,340 |
Net operating losses | 20,591 | 21,547 |
Compensation accruals | 7,804 | 6,757 |
Investments | 8,704 | 8,717 |
Unrealized loss/(gain) | 12,157 | 2,362 |
Other | 118 | 46 |
Gross deferred tax assets | 77,102 | 75,769 |
Valuation allowance | (10,855) | (2,397) |
Gross deferred tax assets after valuation allowance | 66,247 | 73,372 |
Deferred tax liabilities: | ||
Intangible assets | (12,104) | (12,718) |
Other investments | 0 | (492) |
Gross deferred tax liabilities | (12,104) | (13,210) |
Deferred tax assets, net | $ 54,143 | $ 60,162 |
Income Taxes - Summary of Activity in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 0 | $ 32,602 | $ 33,948 |
Decrease related to tax positions taken in prior years | 0 | (32,602) | (1,346) |
Increase related to positions taken in the current year | 0 | 0 | 0 |
Balance, end of year | $ 0 | $ 0 | $ 32,602 |
Debt (Detail) - Revolving Credit Facility [Member] - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Line of Credit Facility [Line Items] | ||
Term for credit facility | 5 years | |
Maximum borrowing capacity | $ 75,000,000 | |
Limit for the issuance of standby letters of credit | 7,500,000.0 | |
Credit facility amount increase in borrowing capacity on condition | 50,000,000 | |
Outstanding under the Credit Facility | 0 | $ 0 |
Remaining borrowing capacity | $ 75,000,000 | |
Minimum interest coverage ratio | 4.00 | |
Maximum leverage ratio | 2.75 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.35% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Percentage of margin on principal amount | 0.75% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.50% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Percentage of margin on principal amount | 2.50% |
Equity Transactions (Detail) - USD ($) |
3 Months Ended | 12 Months Ended | 63 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Oct. 21, 2015 |
|
Equity [Abstract] | ||||||||||||
Repurchase of common shares (in shares) | 638,703 | 225,441 | 1,214,144 | |||||||||
Weighted average price (in $ per share) | $ 125.22 | $ 178.54 | $ 129.85 | |||||||||
Cost of shares repurchased | $ 80,000,000 | $ 40,300,000 | $ 157,700,000 | |||||||||
Shares authorized for repurchase (in shares) | 1,500,000 | |||||||||||
Remaining shares authorized for repurchase (in shares) | 1,485,856 | 1,485,856 | 1,485,856 | |||||||||
Cash dividends declared (in $ per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.8 | $ 1.35 | $ 0 | ||
Cash dividends declared | $ 16,009,000 | $ 12,451,000 | $ 0 | |||||||||
Dividends payable | $ 4,233,000 | $ 4,270,000 | $ 4,233,000 | $ 4,270,000 | $ 0 | $ 4,233,000 | ||||||
Dividend, to be paid date | Feb. 12, 2016 | |||||||||||
Dividend, record date | Jan. 29, 2016 |
Retirement Savings Plan (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contributions | $ 2.1 | $ 2.8 | $ 2.5 |
First 3.0% [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution percentage | 100.00% | ||
Percentage of employee's gross pay matched | 3.00% | ||
Next 2.0% [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution percentage | 50.00% | ||
Percentage of employee's gross pay matched | 2.00% |
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense | $ 11,863 | $ 9,778 | $ 7,960 |
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||||||||||
Net Income | $ 30,671 | $ 96,965 | $ 77,130 | ||||||||
Noncontrolling interests | 4,435 | 735 | (1,940) | ||||||||
Net Income Attributable to Common Stockholders | $ 6,636 | $ (649) | $ 9,777 | $ 19,342 | $ 18,879 | $ 37,340 | $ 19,543 | $ 21,938 | $ 35,106 | $ 97,700 | $ 75,190 |
Shares: | |||||||||||
Basic: Weighted-average number of shares outstanding (in shares) | 8,797 | 9,091 | 8,188 | ||||||||
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares) | 163 | 201 | 245 | ||||||||
Diluted: Weighted-average number of shares outstanding (in shares) | 8,960 | 9,292 | 8,433 | ||||||||
Earnings per share—Basic (in $ per share) | $ 0.78 | $ (0.07) | $ 1.10 | $ 2.16 | $ 2.09 | $ 4.10 | $ 2.14 | $ 2.41 | $ 3.99 | $ 10.75 | $ 9.18 |
Earnings per share—Diluted (in $ per share) | $ 0.76 | $ (0.07) | $ 1.08 | $ 2.11 | $ 2.05 | $ 4.02 | $ 2.10 | $ 2.34 | $ 3.92 | $ 10.51 | $ 8.92 |
Earnings Per Share - Additional Information (Detail) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||
Number of anti-dilutive instruments excluded from computation of weighted-average shares for diluted earnings per share | 1,521 | 6,085 | 0 |
Consolidated Sponsored Investment Products - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Detail) - Consolidated Sponsored Investment Products [Member] - Debt Securities [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 1,065 | $ 0 |
Purchases | 913 | 1,119 |
Sales | (370) | 0 |
Paydowns | (10) | (3) |
Change in unrealized loss, net | (113) | (51) |
Change in realized loss, net | (141) | 0 |
Transfers from Level 2 | 151 | 0 |
Transfers to Level 2 | (98) | 0 |
Balance at end of period | $ 1,397 | $ 1,065 |
Consolidated Sponsored Investment Products - Derivative Instruments (Details) - Consolidated Sponsored Investment Products [Member] $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Options [Member] | Long [Member] | |
Derivative [Line Items] | |
Volume | $ 3,015 |
Options [Member] | Short [Member] | |
Derivative [Line Items] | |
Volume | 755 |
Futures [Member] | |
Derivative [Line Items] | |
Volume | 278 |
Forward foreign currency exchange [Member] | Long [Member] | |
Derivative [Line Items] | |
Volume | 5,591 |
Forward foreign currency exchange [Member] | Short [Member] | |
Derivative [Line Items] | |
Volume | 29,069 |
Interest rate swaps [Member] | |
Derivative [Line Items] | |
Volume | 69,094 |
Other swaps [Member] | |
Derivative [Line Items] | |
Volume | $ 35,180 |
Consolidated Sponsored Investment Products - Derivatives, Net Gains (Losses) (Details) - Consolidated Sponsored Investment Products [Member] $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gains (losses) | $ 745 |
Interest Rate Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gains (losses) | (80) |
Foreign Exchange Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gains (losses) | 181 |
Equity Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gains (losses) | 312 |
Commodity Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gains (losses) | 324 |
Credit Risk Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net gains (losses) | $ 8 |
Consolidated Investment Product - Balances of Consolidated Investment Product (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Total investments | $ 56,738 | $ 63,448 |
Consolidated Investment Product [Member] | ||
Variable Interest Entity [Line Items] | ||
Total cash equivalents | 8,297 | 0 |
Total investments | 199,485 | |
Other assets | 1,467 | 0 |
Debt | (152,597) | 0 |
Securities purchased payable | (18,487) | $ 0 |
The Company’s net interests in consolidated sponsored investment products | $ 38,165 |
Consolidated Investment Product - Additional Information (Details) |
12 Months Ended | ||
---|---|---|---|
Aug. 17, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
Product
|
Dec. 31, 2014
USD ($)
Product
|
|
Variable Interest Entity [Line Items] | |||
Investment of capital | $ 40,000,000 | ||
Number of consolidated investment products | Product | 1 | 0 | |
Consolidated Investment Product [Member] | |||
Variable Interest Entity [Line Items] | |||
Debt outstanding | $ 152,597,000 | $ 0 | |
Consolidated Investment Product [Member] | Secured Debt [Member] | Financing Facility [Member] | |||
Variable Interest Entity [Line Items] | |||
Debt term | 3 years | ||
Maximum borrowing capacity | $ 160,000,000.0 | ||
Debt outstanding | $ 152,600,000 | ||
Consolidated Investment Product [Member] | Secured Debt [Member] | Financing Facility [Member] | LIBOR [Member] | |||
Variable Interest Entity [Line Items] | |||
Basis spread on variable interest rate | 1.25% | ||
Term of initial ramp-up period | 9 months | ||
Basis spread on variable interest rate upon completion of initial ramp-up period | 2.00% |
Consolidation - Additional Information (Details) - Product |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of consolidated products | 13 | 12 |
Number of consolidated sponsored investment products | 12 | 12 |
Number of consolidated investment products | 1 | 0 |
Subsequent Event (Detail) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 17, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Subsequent Event [Line Items] | |||||||||||
Cash dividends declared (in $ per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.8 | $ 1.35 | $ 0 | |
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash dividends declared (in $ per share) | $ 0.45 |
Selected Quarterly Data (Unaudited) - Summary of Selected Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 86,115 | $ 92,375 | $ 99,656 | $ 103,831 | $ 112,137 | $ 117,841 | $ 112,749 | $ 107,871 | $ 381,977 | $ 450,598 | $ 389,215 |
Operating Income | 16,506 | 23,122 | 16,208 | 24,542 | 36,665 | 38,927 | 22,502 | 32,626 | 80,378 | 130,720 | 113,504 |
Net Income (Loss) Attributable to Common Stockholders | $ 6,636 | $ (649) | $ 9,777 | $ 19,342 | $ 18,879 | $ 37,340 | $ 19,543 | $ 21,938 | $ 35,106 | $ 97,700 | $ 75,190 |
Earnings (loss) per share—Basic (in $ per share) | $ 0.78 | $ (0.07) | $ 1.10 | $ 2.16 | $ 2.09 | $ 4.10 | $ 2.14 | $ 2.41 | $ 3.99 | $ 10.75 | $ 9.18 |
Earnings (loss) per share—Diluted (in $ per share) | $ 0.76 | $ (0.07) | $ 1.08 | $ 2.11 | $ 2.05 | $ 4.02 | $ 2.10 | $ 2.34 | $ 3.92 | $ 10.51 | $ 8.92 |
Net tax benefit of federal corporate income tax return | $ 15,500 |
*!OLRN**0W=4S!U!MG1%'8E6,LIGD>47;PM<2G*$]JB8/8)LZ8KYGC?R^HM1'N44JE3@H0F[*16ZHZ+N M:%):"%U*V0^^$5*A7RCV(BR2GHZDU+!Q%,VP9)3*E+R;8Y3U*? RW4=UE#-:VCD M_3U]@020RXN?DF$6363 LG'$\"@^L%W%3SX>F/9G;;Y_JQ^;,^/^Y/ MW>I+V_?M<3IB?&C;OAFT# JIJ>\O/P[-0S]^M
A)*..1?PZ&NE[/ZQZ5HV6:;)A >A_F+.'3R2GWY%P5["
MYX)E$DR8'^HOTFOX^(]TZ*NE4X4KXC%Q04 )7 !TEF@U T4
M06^@U%D(0Q)YT[C0(L$/] ;/HN!)%.\J:^RLDJ L\G=F0L4H>F#CD5D8,@D3
M>\,09T/HO97YM\V$BDB6^*CMA$(X\5*["941ITE#8< Y*EIZ9C]I=ZX:&>R%
MTJ>./7!.0BBFO>"3+KS4U\U]P-E)F5=B.C* (?4$L#!!0
M ( $&)6$CR]?:QB ( "<) 9 >&PO=V]R:W-H965T6CW61XL@(3&!07NEQ/<@Y1!R#?^>]9\;QF(Z_BB
M_C-.Z]T?N85[E']$ZP9O-L]("QV?I'O&^1><1]@&P0:EC5_23-:ANE RHOAK
M6H6.ZYS^%.Q,^YS S@2V$&[S:#PUBC9_<,?KRN!,[,C#V6UV'FZ"B%
-G=/YO^OK*X3K1U[/#_Q#(KP3R))#_
M=<1+S/JJ"3O;4PVV35?'D0H'XZ?-6ZK+[;SGZ4Q.\++H10O/PK;2.+)''TXV
M'6J#Z"&8R&YN*>G"^UD2!8V/X?<0V^E*38G'_OA EE=:?@)02P,$% @
M08E82% 1H'^@ 0 L0, !D !X;"]W;W)K\Q%P/R<[V5(/MT]5QI,')^+QY2W6YG?<\G
%$6
M%D?B>A'/;K4-%KUHX9>PK32.'-"'DTV'VB!Z"":RFPTE77@_2Z*@\3&\
M"[&=KM24>.Q/#V1YI>4_4$L#!!0 ( $&)6$C8KL5A\@( ,L- 9
M>&PO=V]R:W-H965T
":7&29/_
M/DR_F"9P.A_<7VRY.OT3EN29TS_-1=4Z6QB "[GB&U7OO'\ECQIVQO#,J;2_
MX'R3BK,A) ,?[JQ:>W8NR<9?(0M!T2/@&@,B&*;N /9-']@A8M<\![(#IN7
MAPY:+HR)=@8Z-VF7MGJW>R]BE.;AW1AYFM)I(JM!HR+4[HN(R$>4T20\1MFZ
MP7:6X]8:;*U!A/;K!O%@T#J#V!HDS@"BQ*_2B4HG0M"I-KMUS&Z&V?F8=!'C
M1,B=.-Q\XSB2&2;Q,=DB)O$QR3HFG6%2'[-?Q*0^YAN'ELTPF8>)X"(F\S'Q
M.F8_^X;VUB%^?(3+Q>RG7P#:;-
?
M:[K[LJ(D640O0R.#N9\8'!ET$:5.D'
B(99R,3T
MN#ILA!.0_!X*J8-TYXM1ZT^,I# -9K%P9!3 3]TKL>X21[X7/WF[+QL5K:4V
MUY+^1K*34@OC##R;\ [FNGB;5&*GNR$SXW:X0 T3+8_7^^#M4KK\!U!+ P04
M " !!B5A(Q=':S1X" "]!@ &0 'AL+W=O