Consolidated Investment Products (Tables)
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12 Months Ended |
Dec. 31, 2019 |
Consolidated Investment Products [Abstract] |
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Balances Related To CIP |
The following table presents the balances related to CIP that are included on the Consolidated Balance Sheets as well as Invesco's net interest in the CIP for each period presented. | | | | | | | | As of | $ in millions | December 31, 2019 | | December 31, 2018 | Cash and cash equivalents of CIP | 652.2 |
| | 657.7 |
| Accounts receivable and other assets of CIP | 172.9 |
| | 110.8 |
| Investments of CIP | 7,808.0 |
| | 6,213.5 |
| Less: Debt of CIP | (6,234.6 | ) | | (5,226.0 | ) | Less: Other liabilities of CIP | (949.6 | ) | | (387.6 | ) | Less: Retained earnings | 9.5 |
| | 7.9 |
| Less: Accumulated other comprehensive income, net of tax | (9.4 | ) | | (7.8 | ) | Less: Equity attributable to redeemable noncontrolling interests | (383.5 | ) | | (396.2 | ) | Less: Equity attributable to nonredeemable noncontrolling interests | (454.9 | ) | | (356.5 | ) | Invesco's net interests in CIP | 610.6 |
| | 615.8 |
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Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income |
The following table reflects the impact of consolidation of investment products into the Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 2017.
Summary of Income Statement Impact of CIP | | | | | | | | | | | | | Years ended December 31, | $ in millions | | 2019 | | 2018 | | 2017 | Total operating revenues | | (33.5 | ) | | (28.6 | ) | | (32.4 | ) | Total operating expenses | | 28.1 |
| | 16.2 |
| | 10.5 |
| Operating income | | (61.6 | ) | | (44.8 | ) | | (42.9 | ) | Equity in earnings of unconsolidated affiliates | | 5.1 |
| | (10.2 | ) | | (20.0 | ) | Interest and dividend income | | (4.6 | ) | | — |
| | — |
| Other gains and losses, net | | (40.8 | ) | | 34.5 |
| | (38.4 | ) | Interest and dividend income of CIP | | 345.4 |
| | 275.4 |
| | 211.6 |
| Interest expense of CIP | | (228.5 | ) | | (190.7 | ) | | (155.3 | ) | Other gains/(losses) of CIP, net | | 32.9 |
| | (55.1 | ) | | 81.0 |
| Income before income taxes | | 47.9 |
| | 9.1 |
| | 36.0 |
| Income tax provision | | — |
| | — |
| | — |
| Net income | | 47.9 |
| | 9.1 |
| | 36.0 |
| Net (income)/loss attributable to noncontrolling interests in consolidated entities | | (49.5 | ) | | (0.3 | ) | | (33.7 | ) | Net income attributable to Invesco Ltd. | | (1.6 | ) | | 8.8 |
| | 2.3 |
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VIE Balance Sheets Consolidated In Period |
The current period activity for the consolidated funds, including the initial funding and subsequent investment of initial cash balances into underlying investments of CIP, is reflected in the company’s Consolidated Financial Statements.
| | | | | | | | | | | | | | | | For the year ended December 31, 2019 | | For the year ended December 31, 2018 | $ in millions | | VIEs | | VOEs | | VIEs | | VOEs | Cash and cash equivalents of CIP | | 9.8 |
| | 0.2 |
| | 400.7 |
| | — |
| Accounts receivable and other assets of CIP | | 3.1 |
| | 0.3 |
| | 6.6 |
| | 1.9 |
| Investments of CIP | | 508.7 |
| | 25.5 |
| | 914.8 |
| | 172.6 |
| Total assets | | 521.6 |
| | 26.0 |
| | 1,322.1 |
| | 174.5 |
| | | | | | | | | | Debt of CIP | | 188.8 |
| | — |
| | 1,017.1 |
| | — |
| Other liabilities of CIP | | 332.8 |
| | — |
| | 38.5 |
| | — |
| Total liabilities | | 521.6 |
| | — |
| | 1,055.6 |
| | — |
| Total equity | | — |
| | 26.0 |
| | 266.5 |
| | 174.5 |
| Total liabilities and equity | | 521.6 |
| | 26.0 |
| | 1,322.1 |
| | 174.5 |
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| | | | | | | | | | | | | | | | For the year ended December 31, 2019 | | For the year ended December 31, 2018 | $ in millions | | VIEs | | VOEs | | VIEs | | VOEs | Cash and cash equivalents of CIP | | 7.6 |
| | — |
| | 104.8 |
| | — |
| Accounts receivable and other assets of CIP | | 22.3 |
| | 0.6 |
| | 26.3 |
| | 0.1 |
| Investments of CIP | | 626.1 |
| | 94.3 |
| | 917.4 |
| | 5.9 |
| Total assets | | 656.0 |
| | 94.9 |
| | 1,048.5 |
| | 6.0 |
| | | | | — |
| | | | | Debt of CIP | | 526.2 |
| | — |
| | 938.4 |
| | — |
| Other liabilities of CIP | | 22.2 |
| | — |
| | 8.9 |
| | — |
| Total liabilities | | 548.4 |
| | — |
| | 947.3 |
| | — |
| Total equity | | 107.6 |
| | 94.9 |
| | 101.2 |
| | 6.0 |
| Total liabilities and equity | | 656.0 |
| | 94.9 |
| | 1,048.5 |
| | 6.0 |
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Fair Value Hierarchy Levels Of Investments Held And Notes Issued By Consolidated Investment Products |
The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of December 31, 2019 and December 31, 2018: | | | | | | | | | | | | | | | | | As of December 31, 2019 | $ in millions | Fair Value Measurements | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Investments Measured at NAV as a practical expedient | Assets: | | | | | | | | | | Bank loans | 6,504.4 |
| | — |
| | 6,504.4 |
| | — |
| | — |
| Bonds | 705.9 |
| | 0.5 |
| | 705.4 |
| | — |
| | — |
| Equity securities | 275.9 |
| | 204.4 |
| | 71.5 |
| | — |
| | — |
| Equity and fixed income mutual funds | 29.8 |
| | 20.3 |
| | 9.5 |
| | — |
| | — |
| Investments in other private equity funds | 213.4 |
| | — |
| | — |
| | — |
| | 213.4 |
| Real estate investments | 78.6 |
| | — |
| | — |
| | 78.6 |
| | — |
| Total assets at fair value | 7,808.0 |
| | 225.2 |
| | 7,290.8 |
| | 78.6 |
| | 213.4 |
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| | | | | | | | | | | | | | | | | As of December 31, 2018 | $ in millions | Fair Value Measurements | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Investments Measured at NAV as a Practical expedient | Assets: | | | | | | | | | | Bank loans | 5,117.0 |
| | — |
| | 5,117.0 |
| | — |
| | — |
| Bonds | 636.0 |
| | — |
| | 636.0 |
| | — |
| | — |
| Equity securities | 241.2 |
| | 208.1 |
| | 33.1 |
| | — |
| | — |
| Equity and fixed income mutual funds | 18.8 |
| | 18.8 |
| | — |
| | — |
| | — |
| Investments in other private equity funds | 188.7 |
| | — |
| | — |
| | — |
| | 188.7 |
| Real estate investments | 11.8 |
| | — |
| | — |
| | 11.8 |
| | — |
| Total assets at fair value | 6,213.5 |
| | 226.9 |
| | 5,786.1 |
| | 11.8 |
| | 188.7 |
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Beginning And Ending Fair Value Measurements For Level 3 Assets And Liabilities |
The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs: | | | | | | | | Year ended December 31, 2019 | | Year ended December 31, 2018 | $ in millions | Level 3 Assets | | Level 3 Assets | Beginning balance | 11.8 |
| | 76.2 |
| Purchases | 58.9 |
| | 13.0 |
| Sales | — |
| | (84.8 | ) | Gains and losses included in the Consolidated Statements of Income(1) | 7.9 |
| | 7.4 |
| Ending balance | 78.6 |
| | 11.8 |
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____________
(1) Included in gains/(losses) of CIP, net in the Consolidated Statement of Income for the year ended December 31, 2019 are $7.9 million in net unrealized gains attributable to investments still held at December 31, 2019 by CIP (year ended December 31, 2018: $1.1 million net unrealized losses attributable to investments still held at December 31, 2018).
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Fair Value Inputs, Assets and Liabilities, Quantitative Information, Consolidated Investment Products |
The table below summarizes as of December 31, 2019 and December 31, 2018, the nature of investments that are valued using the NAV as a practical expedient and any related liquidation restrictions or other factors which may impact the ultimate value realized: | | | | | | | | | | | | | | | | December 31, 2019 | | December 31, 2018 | in millions, except term data | | Fair Value | | Total Unfunded Commitments | | Weighted Average Remaining Term (2) | | Fair Value | | Total Unfunded Commitments | | Weighted Average Remaining Term (2) | Private equity funds (1) | | $213.4 | | $78.3 | | 6.7 years | | $188.7 | | $101.9 | | 6.1 years |
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| | (1) | These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds. |
(2) These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.
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