þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Bermuda
(State or Other Jurisdiction of
Incorporation or Organization)
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98-0557567
(I.R.S. Employer
Identification No.)
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1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA
(Address of Principal Executive Offices)
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30309
(Zip Code)
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Title of Each Class
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Name of Exchange on Which Registered
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Common Shares, $0.20 par value per share
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New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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PART I
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PART II
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PART III
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PART IV
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•
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variations in demand for our investment products or services, including termination or non-renewal of our investment advisory agreements;
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significant changes in net asset flows into or out of the accounts we manage or declines in market value of the assets in, or redemptions or other withdrawals from, those accounts;
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enactment of adverse state, federal or foreign legislation or changes in government policy or regulation (including accounting standards) affecting our operations, our capital requirements or the way in which our profits are taxed;
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significant fluctuations in the performance of debt and equity markets worldwide;
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exchange rate fluctuations, especially as against the U.S. Dollar;
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•
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the effect of economic conditions and interest rates in the U.S. or globally;
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our ability to compete in the investment management business;
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the effect of consolidation in the investment management business;
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limitations or restrictions on access to distribution channels for our products;
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our ability to attract and retain key personnel, including investment management professionals;
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the investment performance of our investment products;
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our ability to acquire and integrate other companies into our operations successfully and the extent to which we can realize anticipated cost savings and synergies from such acquisitions;
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changes in regulatory capital requirements;
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our debt and the limitations imposed by our credit facility;
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the effect of failures or delays in support systems or customer service functions, and other interruptions of our operations;
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the occurrence of breaches and errors in the conduct of our business, including any failure to properly safeguard confidential and sensitive information;
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the execution risk inherent in our ongoing company-wide transformational initiatives;
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the effect of political or social instability in the countries in which we invest or do business;
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the effect of terrorist attacks in the countries in which we invest or do business and the escalation of hostilities that could result therefrom;
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war and other hostilities in or involving countries in which we invest or do business; and
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•
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adverse results in litigation, including private civil litigation related to mutual fund fees and any similar potential regulatory or other proceedings.
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Achieve strong investment performance over the long term for our clients;
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Deliver our investment capabilities anywhere in the world to meet our clients' needs;
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Harness the power of our global operating platform by continuously improving our processes and procedures and further integrating the support structures of our business globally; and
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Perpetuate a high-performance organization by driving greater transparency, accountability and execution at all levels.
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Relative investment performance remained strong across the enterprise, with 80% of ranked assets* performing ahead of peers on a 5-year basis at year end;
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We focused on strengthening and deepening relationships with clients in key markets. For example, we maintained a market share ranking in the top three on all major platforms in the U.K. retail market and further strengthened relationships with leading financial institutions in all U.S. retail channels, where 70% of our U.S. AUM is with top 20 distributors;
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•
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We expanded our presence and improved our competitive advantage as a global investment manager in fast-growing, high-priority markets and segments;
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We continued our share repurchase program, purchasing more than $436 million in shares; and
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•
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We maintained strong inflows at Invesco PowerShares, and continued to expand our offering of intelligent ETFs within the Canadian marketplace through local exchange listings and an innovative suite of mutual funds.
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*
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As of December 31, 2011, 80% of ranked assets were performing ahead of peers on a 5-year basis. Of total Invesco AUM, 58% were ranked at year-end. See Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations - Investment Capabilities Performance Overview,” for more discussion of AUM rankings by investment capability.
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•
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There is an increasing number of investors who seek external professional advice and investment managers to help them reach their financial goals.
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As the “baby boomer” generation continues to mature, there is a large segment of the world population that is reaching retirement age. Economic growth in emerging market countries has created a large and rapidly expanding middle class and high net worth population with accelerating levels of wealth. As a result, globally, there is a high degree of demand
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•
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Given the dynamics of the global markets over the past year, we have seen increased demand for investment solutions that provide reasonable returns in volatile markets. Investors increasingly recognize the need for reducing downside risk in addition to upside participation. Invesco has been growing rapidly in this market space and has a market-leading asset allocation capability that is highly sought by retail and institutional investors.
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Investors are increasingly seeking to invest outside their domestic markets in order to increase their returns and mitigate risk. They seek firms that operate globally and have investment expertise in markets around the world.
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Although the U.S. and Europe are currently the two largest markets for financial assets by a wide margin, other markets in the world, such as China and India, are rapidly growing. As these population-heavy markets mature, investment managers that are truly global will be in the best position to capture this growth. Additionally, population age differences between emerging and developed markets will result in differing investment needs and horizons among countries. Asset allocation and pension type also differ substantially among countries. Firms such as Invesco, with diversified investment capabilities and product types, are best positioned to meet clients' needs in these markets. Invesco has a meaningful and expanding market presence in many of the world's fastest growing and wealthiest regions, including the U.S., Canada, Western Europe and the U.K., the Middle East and Asia-Pacific. Our strong U.S. presence and growing global presence represent significant long-term growth prospects for our business.
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•
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The global trend towards the provision of defined contribution retirement plans continues, although significant opportunity remains for managers to increase defined benefit market share. Invesco has the capability to serve both the defined benefit and defined contribution markets globally.
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Money Market
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Fixed Income
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Balanced
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Equity
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Alternatives
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Cash Plus
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Convertibles
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Asset Allocation
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Enhanced Index/Quantitative
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Absolute Return
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Government/Treasury
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Core/Core Plus
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Global
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Global
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Asian Direct Real Estate
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Prime
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Emerging Markets
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Single Country
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International
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Commodities
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Taxable
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Enhanced Cash
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Target Date
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Large Cap Core
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Currencies
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Tax-Free
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Government Bonds
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Target Risk
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Large Cap Growth
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European Direct Real Estate
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High-Yield Bonds
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Large Cap Value
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Financial Structures
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Intermediate Term
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Mid Cap Core
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Global REITS
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International/Global
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Mid Cap Growth
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Private Capital - Direct
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Investment Grade Credit
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Mid Cap Value
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Private Capital - Fund of Funds
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Municipal Bonds
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Regional/Single Country
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Risk Premia Capture
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Passive/Enhanced
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Sector Funds
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U.S. Direct Real Estate
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Senior Secured Loans
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Small Cap Core
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U.S. REITS
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Short Term
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Small Cap Growth
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Stable Value
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Small Cap Value
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Structured Securities (ABS, MBS, CMBS)
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Retail
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Institutional
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Private Wealth Management
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Closed-end Mutual Funds
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Collective Trust Funds
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Exchange-Traded Funds
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Exchange-Traded Funds
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Exchange-Traded Funds
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Managed Accounts
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Individual Savings Accounts
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Institutional Separate Accounts
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Mutual Funds
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Investment Companies with Variable Capital
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Private Capital Funds
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Private Capital Funds
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Investment Trusts
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Separate Accounts
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Open-end Mutual Funds
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Separately Managed Accounts (SMA)
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Unit Investment Trusts
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Variable Insurance Funds
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($ billions)
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1-Yr Change
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U.S.
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$430.0
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3.5
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%
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Canada
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$23.4
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(16.1
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)%
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U.K.
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$89.8
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(2.5
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)%
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Continental Europe
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$32.0
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(9.3
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)%
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Asia
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$50.1
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9.4
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%
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Total
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$625.3
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1.4
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%
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($ billions)
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1-Yr Change
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Retail
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$373.9
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(1.1
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)%
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Institutional
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$233.5
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5.5
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%
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PWM
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$17.9
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5.3
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%
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Total
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$625.3
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1.4
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%
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($ billions)
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1-Yr Change
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Equity
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$271.0
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(7.8
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)%
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Balanced
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$44.6
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2.5
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%
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Money Market
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$74.0
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8.3
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%
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Fixed Income
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$149.0
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12.9
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%
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Alternative
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$86.7
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10.2
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%
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Total
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$625.3
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1.4
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%
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($ billions)
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1-Yr Change
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Active
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$529.0
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(1.3
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)%
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ETF, UIT, and Passive
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$96.3
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19.2
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%
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Total
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$625.3
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1.4
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%
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•
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In the event of extreme circumstances, including economic, political, or business crises, such as a widespread systemic failure in the global financial system or additional failures of firms that have significant obligations as counterparties on financial instruments, we may suffer significant declines in assets under management and severe liquidity or valuation issues in the short-term sponsored investment products in which client and company assets are invested, all of which would adversely affect our operating results, financial condition, liquidity, credit ratings, ability to access capital markets, and retention and ability to attract key employees. Additionally, these factors could impact our ability to realize the carrying value of our goodwill and other intangible assets.
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•
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In addition to the impact of the market volatility on client portfolios, the illiquidity and volatility of both the global fixed income and equity markets could negatively affect our ability to manage client inflows and outflows from pooled
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•
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Our money market funds have always maintained a $1.00 net asset value (NAV); however, we do not guarantee such level. Market conditions could lead to severe liquidity issues in money market products, which could affect their NAVs. If the NAV of one of our money market funds were to decline below $1.00 per share, such funds could experience significant redemptions in assets under management, loss of shareholder confidence and reputational harm. In 2010, the SEC adopted new rules governing U.S. registered money market funds. These rules are designed to significantly strengthen the regulatory requirements governing money market funds, increase the resilience of such funds to economic stresses, and reduce the risk of runs on these funds. Regulators in the U.S. continue to evaluate whether to propose mandating a variable (“floating”) NAV for money market funds. The company believes such a change would have significant adverse consequences on the money market funds industry and the short-term credit markets.
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Even if legislative or regulatory initiatives or other efforts successfully stabilize and add liquidity to the financial markets, we may need to modify our strategies, businesses or operations, and we may incur increased capital requirements and constraints or additional costs in order to satisfy new regulatory requirements or to compete in a changed business environment.
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·
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Expanded prudential regulation over investment management firms.
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·
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New or increased capital requirements and related regulation (including new capital requirements pertaining to money market funds).
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·
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Additional change to the regulation of money market funds in the U.S. The SEC has adopted changes to Rule 2a-7, the primary securities regulation governing U.S. registered money market funds. These new rules are designed to significantly strengthen the regulatory requirements governing money market funds, increase the resilience of such funds to economic stresses, and reduce the risk of runs on these funds. Regulators in the U.S. continue to evaluate whether to propose additional legal and regulatory changes impacting money market funds. Invesco believes certain potential changes that have been the subject of recent media reports would have significant adverse consequences on the money market funds industry and the short-term credit markets.
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·
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Changes to the distribution of investment funds and other investment products. In the U.S., the SEC previously has proposed and may repropose significant changes to Rule 12b-1. Invesco believes these proposals could increase operational and compliance costs. The U.K. Financial Services Authority continues to develop its Retail Distribution Review, which is expected to reshape the manner in which retail investment funds are sold in the U.K. The EU adopted the Alternative Investment Fund Manager Directive; implementing legislation in member states could, among other elements, impose restrictions on the marketing and sale within the EU of private equity and other alternative investment funds sponsored by non-EU managers. Various regulators have promulgated or are considering other new disclosure and suitability requirements pertaining to the distribution of investment funds and other investment products, including enhanced standards and requirements pertaining to disclosures made to retail investors at the point of sale.
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·
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Guidelines regarding the structure and components of compensation, including under the Dodd-Frank Act and various EU Directives.
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·
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New and potentially complex and burdensome tax reporting and tax withholding obligations and related compliance activities pertaining to sponsored investment products, including obligations under the Foreign Account Tax Compliance Act (FATCA).
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·
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Additional resourcing for regulatory examinations and inspections, including enforcement reviews, and a more aggressive posture regarding commencing enforcement proceedings resulting in fines, penalties and additional remedial activities.
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·
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Changes impacting certain other products or markets (e.g., retirement savings).
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·
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Enhanced licensing and qualification requirements for key personnel.
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·
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Other additional rules and regulations and disclosure requirements. Certain provisions impose additional disclosure burdens on public companies, including Invesco. Certain proposals could impose requirements for more widespread disclosures of compensation to highly-paid individuals. Depending upon the scope of any such requirements, Invesco could be disadvantaged in retaining key employees vis-à-vis private companies, including hedge fund sponsors.
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·
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Strengthening standards regarding various ethical matters, including enhanced focus of U.S. regulators and law enforcement agencies on compliance with the Foreign Corrupt Practices Act and the enactment of the U.K. Bribery Act.
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·
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Other changes impacting the identity or the organizational structure of regulators with supervisory authority over Invesco.
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Invesco Ltd.
Common Shares
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||||||||||
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High
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Low
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Dividends Declared*
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||||||
2011
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Fourth Quarter
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$
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20.96
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$
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14.85
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$
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0.1225
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Third Quarter
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$
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23.90
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$
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15.51
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$
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0.1225
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Second Quarter
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$
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26.00
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$
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21.92
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$
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0.1225
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First Quarter
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$
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27.42
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$
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23.77
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$
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0.1100
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2010
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Fourth Quarter
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$
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24.24
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$
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21.06
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$
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0.1100
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Third Quarter
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$
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21.90
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$
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16.63
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$
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0.1100
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Second Quarter
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$
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23.66
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$
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16.83
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$
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0.1100
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First Quarter
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$
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23.63
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|
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$
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18.32
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|
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$
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0.1025
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|
*
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Dividends declared represent amounts declared in the current quarter but are attributable to the prior fiscal quarter.
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Note:
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The above chart is the average annual total return for the period from December 31, 2006 through
December 31, 2011
. Peer Index includes Affiliated Managers Group, Alliance Bernstein, Ameriprise Financial, Bank of New York Mellon, BlackRock, Eaton Vance, Federated Investors, Franklin Resources, Invesco Ltd., Janus, Legg Mason, Northern Trust, SEI Investments, State Street, and T. Rowe Price. Returns for the index are average annual total returns.
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Note:
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The above chart is the average annual total return for the period from December 31, 2006 through
December 31, 2011
. Peer Index includes Affiliated Managers Group, Alliance Bernstein, BlackRock, Eaton Vance, Federated Investors, Franklin Resources, Gamco, Invesco Ltd., Janus, Legg Mason, Schroders, T. Rowe Price, and Waddell & Reed. Returns for the index are average annual total returns.
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Month
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Total Number of Shares Purchased
(1)
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Average Price Paid Per Share
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Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (2) |
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Maximum Number at end of period (or Approximate
Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (billions) |
||||||
October 1 - 31, 2011
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418,905
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$
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17.43
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250,000
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$
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0.8
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November 1 - 30, 2011
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4,481,246
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$
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19.30
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4,463,000
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$
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0.7
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December 1 - 31, 2011
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740,609
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$
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19.71
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|
|
631,491
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$
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0.7
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|
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5,640,760
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5,344,491
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(1)
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An aggregate of
296,269
shares were surrendered to us by Invesco employees to satisfy tax withholding obligations or loan repayments in connection with the vesting of equity awards.
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(2)
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On April 23, 2008, our board of directors authorized a share repurchase authorization of up to $1.5 billion of our common shares with no stated expiration date.
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As of and For The Years Ended December 31,
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|||||||||||||
$ in millions, except per share and other data
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2011
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2010
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2009
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2008
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|
2007
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|||||
Operating Data:
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|||||
Operating revenues
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4,092.2
|
|
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3,487.7
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2,627.3
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|
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3,307.6
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|
|
3,878.9
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Net revenues
(1,4)
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2,898.4
|
|
|
2,521.1
|
|
|
1,941.0
|
|
|
2,437.9
|
|
|
2,823.3
|
|
Operating income
|
898.1
|
|
|
589.9
|
|
|
484.3
|
|
|
747.8
|
|
|
994.3
|
|
Adjusted operating income
(2)
|
1,068.9
|
|
|
897.7
|
|
|
565.6
|
|
|
826.1
|
|
|
1,078.6
|
|
Operating margin
|
21.9
|
%
|
|
16.9
|
%
|
|
18.4
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%
|
|
22.6
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%
|
|
25.6
|
%
|
Adjusted operating margin
(2,4)
|
36.9
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%
|
|
35.6
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%
|
|
29.1
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%
|
|
33.9
|
%
|
|
38.2
|
%
|
Net income attributable to common shareholders
|
729.7
|
|
|
465.7
|
|
|
322.5
|
|
|
481.7
|
|
|
673.6
|
|
Adjusted net income
(3)
|
781.6
|
|
|
639.7
|
|
|
378.1
|
|
|
527.1
|
|
|
718.2
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|||||
-basic
|
1.58
|
|
|
1.01
|
|
|
0.77
|
|
|
1.24
|
|
|
1.68
|
|
-diluted
|
1.57
|
|
|
1.01
|
|
|
0.76
|
|
|
1.21
|
|
|
1.64
|
|
Adjusted diluted EPS
(3)
|
1.68
|
|
|
1.38
|
|
|
0.89
|
|
|
1.32
|
|
|
1.74
|
|
Dividends declared per share
|
0.4775
|
|
|
0.4325
|
|
|
0.4075
|
|
|
0.5200
|
|
|
0.3720
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
19,347.0
|
|
|
20,444.1
|
|
|
10,909.6
|
|
|
9,756.9
|
|
|
12,925.2
|
|
Current maturities of total debt
|
215.1
|
|
|
—
|
|
|
—
|
|
|
297.2
|
|
|
—
|
|
Long-term debt
|
1,069.6
|
|
|
1,315.7
|
|
|
745.7
|
|
|
862.0
|
|
|
1,276.4
|
|
Long-term debt of consolidated investment products
|
5,512.9
|
|
|
5,865.4
|
|
|
—
|
|
|
—
|
|
|
116.6
|
|
Total equity attributable to common shareholders
|
8,119.1
|
|
|
8,264.6
|
|
|
6,912.9
|
|
|
5,689.5
|
|
|
6,590.6
|
|
Total equity
|
9,137.6
|
|
|
9,360.9
|
|
|
7,620.8
|
|
|
6,596.2
|
|
|
7,711.8
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|||||
Ending AUM (in billions)
|
625.3
|
|
|
616.5
|
|
|
459.5
|
|
|
377.1
|
|
|
529.3
|
|
Average AUM (in billions)
|
634.3
|
|
|
532.3
|
|
|
415.8
|
|
|
468.9
|
|
|
511.7
|
|
Headcount
|
6,162
|
|
5,617
|
|
4,890
|
|
5,325
|
|
5,475
|
(1)
|
Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of the net revenues of our joint venture investments, plus management fees earned from, less other revenue recorded by, consolidated investment products. See Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations
-
Schedule of Non-GAAP Information,” for the reconciliation of operating revenues to net revenues.
|
(2)
|
Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the operating income of our joint venture investments, transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, compensation expense related to market valuation changes in deferred compensation plans, the operating income impact of the consolidation of investment products, and other reconciling items. See Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations - Schedule of Non-GAAP Information,” for the reconciliation of operating income to adjusted operating income.
|
(3)
|
Adjusted net income is net income attributable to common shareholders adjusted to add back transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, and the tax cash flow benefits resulting from tax amortization of goodwill and indefinite-lived intangible assets. Adjusted net income excludes the net income of consolidated investment products, and the net income impact of deferred compensation plans and other reconciling items. By calculation, adjusted EPS is adjusted net income divided by the weighted average number of shares outstanding (for diluted EPS). See Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations
-
Schedule of Non-GAAP Information,” for the reconciliation of net income to adjusted net income.
|
(4)
|
In 2011 the company changed its presentation of marketing support expenses from marketing expenses to third-party distribution, service and advisory expenses in the Consolidated Statements of Income. Such reclassifications had no impact on total operating expenses, net income, or equity attributable to common shareholders. Refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Reclassifications."
|
Index
|
|
Year ended December 31,
|
||||
|
|
2011
|
|
2010
|
|
2009
|
S&P 500
|
|
0.0%
|
|
12.8%
|
|
23.5%
|
FTSE 100
|
|
(5.6)%
|
|
9.0%
|
|
22.1%
|
Nikkei 225
|
|
(17.3)%
|
|
(3.0%)
|
|
19.0%
|
MSCI Emerging Markets
|
|
(20.4)%
|
|
16.4%
|
|
74.5%
|
•
|
Investment risk oversight is supported by the Global Performance Measurement and Risk group and the investment teams.
|
•
|
Business risk oversight is supported by the Corporate Risk Management Committee and related committees.
|
•
|
Results of Operations (for the year ended
December 31, 2011
, compared with the year ended
December 31, 2010
, and for the year ended
December 31, 2010
, compared with the year ended
December 31, 2009
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
|
For the year ended December 31,
|
||||||||||||||
$ in millions
|
2010
|
|
2009
|
|
2008
|
|
2007
|
||||||||
Third-party distribution, service and advisory expenses, as previously reported
|
972.7
|
|
|
693.4
|
|
|
875.5
|
|
|
1,051.1
|
|
||||
Reclassification
|
81.1
|
|
|
43.6
|
|
|
52.3
|
|
|
58.6
|
|
||||
Third-party distribution, service and advisory expenses, as reclassified
|
1,053.8
|
|
|
737.0
|
|
|
927.8
|
|
|
1,109.7
|
|
||||
Marketing expenses, as previously reported
|
159.6
|
|
|
108.9
|
|
|
148.2
|
|
|
157.6
|
|
||||
Reclassification
|
(81.1
|
)
|
|
(43.6
|
)
|
|
(52.3
|
)
|
|
(58.6
|
)
|
||||
Marketing expenses, as reclassified
|
78.5
|
|
|
65.3
|
|
|
95.9
|
|
|
99.0
|
|
||||
Net revenues, as previously reported
|
2,602.2
|
|
|
1,984.6
|
|
|
2,490.2
|
|
|
2,881.9
|
|
||||
Reclassification
|
(81.1
|
)
|
|
(43.6
|
)
|
|
(52.3
|
)
|
|
(58.6
|
)
|
||||
Net revenues, as reclassified
|
$
|
2,521.1
|
|
|
$
|
1,941.0
|
|
|
$
|
2,437.9
|
|
|
$
|
2,823.3
|
|
$ in millions, other than per share amounts, operating margins and AUM
|
Year ended December 31,
|
||||||||||
U.S. GAAP Financial Measures Summary
|
2011
|
|
2010
|
|
2009
|
||||||
Operating revenues
|
|
$4,092.2
|
|
|
|
$3,487.7
|
|
|
|
$2,627.3
|
|
Operating income
|
|
$898.1
|
|
|
|
$589.9
|
|
|
|
$484.3
|
|
Operating margin
|
21.9
|
%
|
|
16.9
|
%
|
|
18.4
|
%
|
|||
Net income attributable to common shareholders
|
|
$729.7
|
|
|
|
$465.7
|
|
|
|
$322.5
|
|
Diluted EPS
|
|
$1.57
|
|
|
|
$1.01
|
|
|
|
$0.76
|
|
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
||||||
Net revenues
(1)
|
|
$2,898.4
|
|
|
|
$2,521.1
|
|
|
|
$1,941.0
|
|
Adjusted operating income
(2)
|
|
$1,068.9
|
|
|
|
$897.7
|
|
|
|
$565.6
|
|
Adjusted operating margin
(2)
|
36.9
|
%
|
|
35.6
|
%
|
|
29.1
|
%
|
|||
Adjusted net income attributable to common shareholders
(3)
|
|
$781.6
|
|
|
|
$639.7
|
|
|
|
$378.1
|
|
Adjusted diluted EPS
(3)
|
|
$1.68
|
|
|
|
$1.38
|
|
|
|
$0.89
|
|
Assets Under Management
|
|
|
|
|
|
||||||
Ending AUM (billions)
|
|
$625.3
|
|
|
|
$616.5
|
|
|
|
$459.5
|
|
Average AUM (billions)
|
|
$634.3
|
|
|
|
$532.3
|
|
|
|
$415.8
|
|
(1)
|
Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of the net revenues of our joint venture investments, plus management and performance fees earned from, less other revenue recorded by, consolidated investment products. See “Schedule of Non-GAAP Information” for the reconciliation of operating revenues to net revenues.
|
(2)
|
Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the operating income of our joint venture investments, transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, compensation expense related to market valuation changes in deferred compensation plans, the operating income impact of the consolidation of investment products, European infrastructure expenses and other reconciling items. See “Schedule of Non-GAAP Information” for the reconciliation of operating income to adjusted operating income.
|
(3)
|
Adjusted net income attributable to common shareholders is net income attributable to common shareholders adjusted to add back transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, and the tax cash flow benefits resulting from tax amortization of goodwill and indefinite-lived intangible assets. Adjusted net income attributable to common shareholders excludes the net income of consolidated investment products, and the net income impact of deferred compensation plans, European infrastructure expenses and other reconciling items. By calculation, adjusted diluted EPS is adjusted net income attributable to common shareholders divided by the weighted average number of diluted shares outstanding. See “Schedule of Non-GAAP Information” for the reconciliation of net income to adjusted net income.
|
|
|
Benchmark Comparison
|
|
Peer Group Comparison
|
||||||||||
|
|
% of AUM Ahead of Benchmark
|
|
% of AUM In Top Half of Peer Group
|
||||||||||
|
|
1yr
|
3yr
|
5yr
|
|
1yr
|
3yr
|
5yr
|
||||||
Equities
|
U.S. Core
|
39
|
%
|
21
|
%
|
83
|
%
|
|
85
|
%
|
31
|
%
|
81
|
%
|
|
U.S. Growth
|
28
|
%
|
28
|
%
|
33
|
%
|
|
21
|
%
|
9
|
%
|
69
|
%
|
|
U.S. Value
|
7
|
%
|
100
|
%
|
96
|
%
|
|
89
|
%
|
92
|
%
|
96
|
%
|
|
Sector
|
26
|
%
|
85
|
%
|
92
|
%
|
|
45
|
%
|
50
|
%
|
63
|
%
|
|
U.K.
|
100
|
%
|
8
|
%
|
96
|
%
|
|
100
|
%
|
0
|
%
|
93
|
%
|
|
Canadian
|
18
|
%
|
48
|
%
|
4
|
%
|
|
49
|
%
|
48
|
%
|
36
|
%
|
|
Asian
|
29
|
%
|
69
|
%
|
87
|
%
|
|
33
|
%
|
42
|
%
|
81
|
%
|
|
European
|
93
|
%
|
64
|
%
|
93
|
%
|
|
56
|
%
|
58
|
%
|
90
|
%
|
|
Global
|
70
|
%
|
47
|
%
|
71
|
%
|
|
80
|
%
|
47
|
%
|
23
|
%
|
|
Global Ex U.S. and Emerging Markets
|
80
|
%
|
87
|
%
|
98
|
%
|
|
74
|
%
|
77
|
%
|
78
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Other
|
Alternatives
|
70
|
%
|
50
|
%
|
82
|
%
|
|
32
|
%
|
14
|
%
|
41
|
%
|
|
Balanced
|
15
|
%
|
93
|
%
|
82
|
%
|
|
71
|
%
|
29
|
%
|
77
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Money Market
|
Money Market
|
37
|
%
|
62
|
%
|
72
|
%
|
|
96
|
%
|
93
|
%
|
94
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Fixed Income
|
U.S. Fixed Income
|
62
|
%
|
79
|
%
|
46
|
%
|
|
65
|
%
|
63
|
%
|
71
|
%
|
|
Global Fixed Income
|
27
|
%
|
92
|
%
|
66
|
%
|
|
18
|
%
|
77
|
%
|
80
|
%
|
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Note:
|
AUM measured in the one-, three-, and five-year peer group rankings represents
59%
,
58%
, and
58%
of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents
70%
,
69%
, and
67%
of total Invesco AUM, respectively, as of
12/31/11
. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain other funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience.
|
|
December 31, 2011
|
|
December 31, 2010
|
|
December 31, 2009
|
Pound Sterling ($ per £)
|
1.555
|
|
1.565
|
|
1.614
|
Canadian Dollar (CAD per $)
|
1.018
|
|
0.994
|
|
1.048
|
Japan (¥ per $)
|
76.950
|
|
81.080
|
|
93.035
|
Euro ($ per Euro)
|
1.299
|
|
1.342
|
|
1.434
|
$ in billions
|
Total AUM
|
|
Active
|
|
ETF, UIT & Passive
|
|
Total AUM
|
|
Active
|
|
ETF, UIT & Passive
|
|
Total AUM
|
|
Active
|
|
ETF, UIT & Passive
|
|||||||||
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
2009
|
|
2009
|
|
2009
|
|||||||||
January 1
|
616.5
|
|
|
535.7
|
|
|
80.8
|
|
|
459.5
|
|
|
406.5
|
|
|
53.0
|
|
|
377.1
|
|
|
346.6
|
|
|
30.5
|
|
Long-term inflows
|
177.6
|
|
|
106.3
|
|
|
71.3
|
|
|
154.7
|
|
|
84.6
|
|
|
70.1
|
|
|
106.1
|
|
|
65.7
|
|
|
40.4
|
|
Long-term outflows
|
(158.4
|
)
|
|
(104.6
|
)
|
|
(53.8
|
)
|
|
(149.2
|
)
|
|
(83.4
|
)
|
|
(65.8
|
)
|
|
(89.5
|
)
|
|
(59.9
|
)
|
|
(29.6
|
)
|
Long-term net flows
|
19.2
|
|
|
1.7
|
|
|
17.5
|
|
|
5.5
|
|
|
1.2
|
|
|
4.3
|
|
|
16.6
|
|
|
5.8
|
|
|
10.8
|
|
Net flows in institutional money market funds
|
5.3
|
|
|
5.3
|
|
|
—
|
|
|
(15.5
|
)
|
|
(15.5
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
Market gains and losses/reinvestment
|
(15.3
|
)
|
|
(13.2
|
)
|
|
(2.1
|
)
|
|
43.9
|
|
|
36.3
|
|
|
7.6
|
|
|
54.7
|
|
|
43.3
|
|
|
11.4
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
121.5
|
|
|
107.1
|
|
|
14.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(0.4
|
)
|
|
(0.5
|
)
|
|
0.1
|
|
|
1.6
|
|
|
0.1
|
|
|
1.5
|
|
|
11.2
|
|
|
10.9
|
|
|
0.3
|
|
December 31
|
625.3
|
|
|
529.0
|
|
|
96.3
|
|
|
616.5
|
|
|
535.7
|
|
|
80.8
|
|
|
459.5
|
|
|
406.5
|
|
|
53.0
|
|
Average long-term AUM
|
566.0
|
|
|
474.7
|
|
|
91.3
|
|
|
463.5
|
|
|
393.8
|
|
|
69.7
|
|
|
328.8
|
|
|
291.2
|
|
|
37.6
|
|
Average institutional money market AUM
|
68.3
|
|
|
68.3
|
|
|
—
|
|
|
68.8
|
|
|
68.8
|
|
|
—
|
|
|
87.0
|
|
|
87.0
|
|
|
—
|
|
Average AUM
|
634.3
|
|
|
543.0
|
|
|
91.3
|
|
|
532.3
|
|
|
462.6
|
|
|
69.7
|
|
|
415.8
|
|
|
378.2
|
|
|
37.6
|
|
Gross revenue yield on AUM
(1)
|
64.9bps
|
|
|
74.0bps
|
|
|
10.8bps
|
|
|
66.0bps
|
|
|
74.3bps
|
|
|
10.8bps
|
|
|
63.8bps
|
|
|
68.8bps
|
|
|
13.4bps
|
|
Gross revenue yield on AUM before performance fees
(1)
|
64.3bps
|
|
|
73.3bps
|
|
|
10.8bps
|
|
|
65.5bps
|
|
|
73.8bps
|
|
|
10.8bps
|
|
|
63.0bps
|
|
|
68.0bps
|
|
|
13.4bps
|
|
Net revenue yield on AUM
(2)
|
45.7bps
|
|
|
51.6bps
|
|
|
10.8bps
|
|
|
47.4bps
|
|
|
52.9bps
|
|
|
10.8bps
|
|
|
46.7bps
|
|
|
50.0bps
|
|
|
13.4bps
|
|
Net revenue yield on AUM before performance fees
(2)
|
45.1bps
|
|
|
50.8bps
|
|
|
10.8bps
|
|
|
46.9bps
|
|
|
52.3bps
|
|
|
10.8bps
|
|
|
46.0bps
|
|
|
49.2bps
|
|
|
13.4bps
|
|
(1)
|
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in
2011
for our JVs in China was
$3.3 billion
(
2010
:
$3.6 billion
,
2009
:
$3.7 billion
). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM, because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the pre-tax earnings of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Consolidated Statements of Income.
|
(2)
|
Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|
Private Wealth Management
|
||||
January 1, 2011 AUM
|
616.5
|
|
|
378.1
|
|
|
221.4
|
|
|
17.0
|
|
Long-term inflows
|
177.6
|
|
|
135.4
|
|
|
38.7
|
|
|
3.5
|
|
Long-term outflows
|
(158.4
|
)
|
|
(126.3
|
)
|
|
(29.8
|
)
|
|
(2.3
|
)
|
Long-term net flows
|
19.2
|
|
|
9.1
|
|
|
8.9
|
|
|
1.2
|
|
Net flows in institutional money market funds
|
5.3
|
|
|
—
|
|
|
5.3
|
|
|
—
|
|
Market gains and losses/reinvestment
|
(15.3
|
)
|
|
(12.3
|
)
|
|
(2.7
|
)
|
|
(0.3
|
)
|
Foreign currency translation
|
(0.4
|
)
|
|
(1.0
|
)
|
|
0.6
|
|
|
—
|
|
December 31, 2011 AUM
|
625.3
|
|
|
373.9
|
|
|
233.5
|
|
|
17.9
|
|
|
|
|
|
|
|
|
|
||||
January 1, 2010 AUM
(2)
|
459.5
|
|
|
239.1
|
|
|
205.2
|
|
|
15.2
|
|
Long-term inflows
|
154.7
|
|
|
106.2
|
|
|
45.2
|
|
|
3.3
|
|
Long-term outflows
|
(149.2
|
)
|
|
(107.4
|
)
|
|
(39.6
|
)
|
|
(2.2
|
)
|
Long-term net flows
|
5.5
|
|
|
(1.2
|
)
|
|
5.6
|
|
|
1.1
|
|
Net flows in institutional money market funds
|
(15.5
|
)
|
|
—
|
|
|
(15.5
|
)
|
|
—
|
|
Market gains and losses/reinvestment
|
43.9
|
|
|
36.8
|
|
|
6.4
|
|
|
0.7
|
|
Acquisitions/dispositions, net
|
121.5
|
|
|
104.0
|
|
|
17.5
|
|
|
—
|
|
Foreign currency translation
|
1.6
|
|
|
(0.6
|
)
|
|
2.2
|
|
|
—
|
|
December 31, 2010 AUM
|
616.5
|
|
|
378.1
|
|
|
221.4
|
|
|
17.0
|
|
|
|
|
|
|
|
|
|
||||
January 1, 2009 AUM
(2)
|
377.1
|
|
|
165.6
|
|
|
198.1
|
|
|
13.4
|
|
Long-term inflows
|
106.1
|
|
|
85.1
|
|
|
16.1
|
|
|
4.9
|
|
Long-term outflows
|
(89.5
|
)
|
|
(67.0
|
)
|
|
(18.0
|
)
|
|
(4.5
|
)
|
Long-term net flows
|
16.6
|
|
|
18.1
|
|
|
(1.9
|
)
|
|
0.4
|
|
Net flows in institutional money market funds
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Market gains and losses/reinvestment
|
54.7
|
|
|
45.7
|
|
|
7.6
|
|
|
1.4
|
|
Foreign currency translation
|
11.2
|
|
|
9.7
|
|
|
1.5
|
|
|
—
|
|
December 31, 2009 AUM
|
459.5
|
|
|
239.1
|
|
|
205.2
|
|
|
15.2
|
|
|
See accompanying notes to these AUM tables on the following page.
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|
Private Wealth Management
|
||||
January 1, 2011 AUM
|
80.8
|
|
|
70.6
|
|
|
10.2
|
|
|
—
|
|
Long-term inflows
|
71.3
|
|
|
59.9
|
|
|
11.4
|
|
|
—
|
|
Long-term outflows
|
(53.8
|
)
|
|
(52.0
|
)
|
|
(1.8
|
)
|
|
—
|
|
Long-term net flows
|
17.5
|
|
|
7.9
|
|
|
9.6
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
(2.1
|
)
|
|
(1.6
|
)
|
|
(0.5
|
)
|
|
—
|
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
December 31, 2011 AUM
|
96.3
|
|
|
76.9
|
|
|
19.4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||||
January 1, 2010 AUM
(2)
|
53.0
|
|
|
48.1
|
|
|
4.9
|
|
|
—
|
|
Long-term inflows
|
70.1
|
|
|
51.2
|
|
|
18.9
|
|
|
—
|
|
Long-term outflows
|
(65.8
|
)
|
|
(47.2
|
)
|
|
(18.6
|
)
|
|
—
|
|
Long-term net flows
|
4.3
|
|
|
4.0
|
|
|
0.3
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
7.6
|
|
|
4.8
|
|
|
2.8
|
|
|
—
|
|
Acquisitions/dispositions, net
|
14.4
|
|
|
13.7
|
|
|
0.7
|
|
|
—
|
|
Foreign currency translation
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
December 31, 2010 AUM
|
80.8
|
|
|
70.6
|
|
|
10.2
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||||
January 1, 2009 AUM
(2)
|
30.5
|
|
|
27.2
|
|
|
3.3
|
|
|
—
|
|
Long-term inflows
|
40.4
|
|
|
40.1
|
|
|
0.3
|
|
|
—
|
|
Long-term outflows
|
(29.6
|
)
|
|
(29.6
|
)
|
|
—
|
|
|
—
|
|
Long-term net flows
|
10.8
|
|
|
10.5
|
|
|
0.3
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
11.4
|
|
|
10.3
|
|
|
1.1
|
|
|
—
|
|
Foreign currency translation
|
0.3
|
|
|
0.1
|
|
|
0.2
|
|
|
—
|
|
December 31, 2009 AUM
|
53.0
|
|
|
48.1
|
|
|
4.9
|
|
|
—
|
|
|
See accompanying notes to these AUM tables on the following page.
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(4)
|
|||||||
January 1, 2011 AUM
|
616.5
|
|
|
294.0
|
|
|
132.0
|
|
|
43.5
|
|
|
68.3
|
|
|
78.7
|
|
|
Long-term inflows
|
177.6
|
|
|
94.2
|
|
|
38.8
|
|
|
10.9
|
|
|
2.2
|
|
|
31.5
|
|
|
Long-term outflows
|
(158.4
|
)
|
|
(102.1
|
)
|
|
(25.1
|
)
|
|
(7.9
|
)
|
|
(2.0
|
)
|
|
(21.3
|
)
|
|
Long-term net flows
|
19.2
|
|
|
(7.9
|
)
|
|
13.7
|
|
|
3.0
|
|
|
0.2
|
|
|
10.2
|
|
|
Net flows in institutional money market funds
|
5.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.3
|
|
|
—
|
|
|
Market gains and losses/reinvestment
|
(15.3
|
)
|
|
(14.8
|
)
|
|
3.2
|
|
|
(1.6
|
)
|
|
0.2
|
|
|
(2.3
|
)
|
|
Foreign currency translation
|
(0.4
|
)
|
|
(0.3
|
)
|
|
0.1
|
|
|
(0.3
|
)
|
|
—
|
|
|
0.1
|
|
|
December 31, 2011 AUM
|
625.3
|
|
|
271.0
|
|
—
|
|
149.0
|
|
|
44.6
|
|
|
74.0
|
|
(5)
|
86.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
January 1, 2010 AUM
(2)
|
459.5
|
|
|
192.6
|
|
|
76.2
|
|
|
39.9
|
|
|
83.5
|
|
|
67.3
|
|
|
Long-term inflows
|
154.7
|
|
|
95.8
|
|
|
32.7
|
|
|
8.2
|
|
|
1.5
|
|
|
16.5
|
|
|
Long-term outflows
|
(149.2
|
)
|
|
(104.4
|
)
|
|
(19.1
|
)
|
|
(7.4
|
)
|
|
(1.9
|
)
|
|
(16.4
|
)
|
|
Long-term net flows
|
5.5
|
|
|
(8.6
|
)
|
|
13.6
|
|
|
0.8
|
|
|
(0.4
|
)
|
|
0.1
|
|
|
Net flows in institutional money market funds
|
(15.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.5
|
)
|
|
—
|
|
|
Market gains and losses/reinvestment
|
43.9
|
|
|
33.4
|
|
|
4.2
|
|
|
2.5
|
|
|
0.1
|
|
|
3.7
|
|
|
Acquisitions/dispositions, net
|
121.5
|
|
|
75.1
|
|
|
37.9
|
|
|
0.3
|
|
|
0.6
|
|
|
7.6
|
|
|
Foreign currency translation
|
1.6
|
|
|
1.5
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
December 31, 2010 AUM
|
616.5
|
|
|
294.0
|
|
|
132.0
|
|
|
43.5
|
|
|
68.3
|
|
|
78.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
January 1, 2009 AUM
(2)
|
377.1
|
|
|
140.6
|
|
|
61.5
|
|
|
31.7
|
|
|
84.2
|
|
|
59.1
|
|
|
Long-term inflows
|
106.1
|
|
|
58.4
|
|
|
19.4
|
|
|
8.2
|
|
|
2.2
|
|
|
17.9
|
|
|
Long-term outflows
|
(89.5
|
)
|
|
(55.2
|
)
|
|
(12.6
|
)
|
|
(8.0
|
)
|
|
(3.1
|
)
|
|
(10.6
|
)
|
|
Long-term net flows
|
16.6
|
|
|
3.2
|
|
|
6.8
|
|
|
0.2
|
|
|
(0.9
|
)
|
|
7.3
|
|
|
Net flows in institutional money market funds
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
Market gains and losses/reinvestment
|
54.7
|
|
|
42.1
|
|
|
6.5
|
|
|
6.0
|
|
|
—
|
|
|
0.1
|
|
|
Foreign currency translation
|
11.2
|
|
|
6.7
|
|
|
1.4
|
|
|
2.0
|
|
|
0.3
|
|
|
0.8
|
|
|
December 31, 2009 AUM
|
459.5
|
|
|
192.6
|
|
|
76.2
|
|
|
39.9
|
|
|
83.5
|
|
|
67.3
|
|
|
See accompanying notes to these AUM tables on the following page.
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(4)
|
||||||
January 1, 2011 AUM
|
80.8
|
|
|
42.8
|
|
|
19.8
|
|
|
—
|
|
|
—
|
|
|
18.2
|
|
Long-term inflows
|
71.3
|
|
|
46.9
|
|
|
12.1
|
|
|
—
|
|
|
—
|
|
|
12.3
|
|
Long-term outflows
|
(53.8
|
)
|
|
(42.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
(8.6
|
)
|
Long-term net flows
|
17.5
|
|
|
4.3
|
|
|
9.5
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
(2.1
|
)
|
|
(1.5
|
)
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
December 31, 2011 AUM
|
96.3
|
|
|
45.6
|
|
|
30.0
|
|
|
—
|
|
|
—
|
|
|
20.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2010 AUM
|
53.0
|
|
|
31.1
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
17.9
|
|
Long-term inflows
|
70.1
|
|
|
56.5
|
|
|
7.4
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
Long-term outflows
|
(65.8
|
)
|
|
(56.3
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
Long-term net flows
|
4.3
|
|
|
0.2
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
7.6
|
|
|
5.6
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Acquisitions/dispositions, net
|
14.4
|
|
|
4.5
|
|
|
9.2
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Foreign currency translation
|
1.5
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
December 31, 2010 AUM
|
80.8
|
|
|
42.8
|
|
|
19.8
|
|
|
—
|
|
|
—
|
|
|
18.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2009 AUM
(2)
|
30.5
|
|
|
21.6
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
Long-term inflows
|
40.4
|
|
|
26.4
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
11.5
|
|
Long-term outflows
|
(29.6
|
)
|
|
(25.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
Long-term net flows
|
10.8
|
|
|
0.7
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
11.4
|
|
|
8.8
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
Foreign currency translation
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
December 31, 2009 AUM
|
53.0
|
|
|
31.1
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
17.9
|
|
|
See accompanying notes to these AUM tables on the following page.
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
(7)
|
||||||
January 1, 2011 AUM
|
616.5
|
|
|
415.4
|
|
|
27.9
|
|
|
92.1
|
|
|
35.3
|
|
|
45.8
|
|
Long-term inflows
|
177.6
|
|
|
120.4
|
|
|
2.6
|
|
|
14.3
|
|
|
17.2
|
|
|
23.1
|
|
Long-term outflows
|
(158.4
|
)
|
|
(106.9
|
)
|
|
(5.7
|
)
|
|
(13.8
|
)
|
|
(18.4
|
)
|
|
(13.6
|
)
|
Long-term net flows
|
19.2
|
|
|
13.5
|
|
|
(3.1
|
)
|
|
0.5
|
|
|
(1.2
|
)
|
|
9.5
|
|
Net flows in institutional money market funds
|
5.3
|
|
|
5.7
|
|
|
0.1
|
|
|
(0.7
|
)
|
|
(0.1
|
)
|
|
0.3
|
|
Market gains and losses/reinvestment
|
(15.3
|
)
|
|
(4.6
|
)
|
|
(0.8
|
)
|
|
(1.6
|
)
|
|
(1.6
|
)
|
|
(6.7
|
)
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|
1.2
|
|
December 31, 2011 AUM
|
625.3
|
|
|
430.0
|
|
|
23.4
|
|
|
89.8
|
|
|
32.0
|
|
|
50.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2010 AUM
|
459.5
|
|
|
294.1
|
|
|
29.0
|
|
|
84.9
|
|
|
24.4
|
|
|
27.1
|
|
Long-term inflows
|
154.7
|
|
|
94.1
|
|
|
2.1
|
|
|
16.2
|
|
|
15.7
|
|
|
26.6
|
|
Long-term outflows
|
(149.2
|
)
|
|
(88.8
|
)
|
|
(6.8
|
)
|
|
(14.1
|
)
|
|
(12.3
|
)
|
|
(27.2
|
)
|
Long-term net flows
|
5.5
|
|
|
5.3
|
|
|
(4.7
|
)
|
|
2.1
|
|
|
3.4
|
|
|
(0.6
|
)
|
Net flows in institutional money market funds
|
(15.5
|
)
|
|
(16.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|
3.5
|
|
|
(1.0
|
)
|
Market gains and losses/reinvestment
|
43.9
|
|
|
30.0
|
|
|
2.2
|
|
|
7.0
|
|
|
2.0
|
|
|
2.7
|
|
Acquisitions/dispositions, net
|
121.5
|
|
|
102.6
|
|
|
0.1
|
|
|
1.8
|
|
|
2.9
|
|
|
14.1
|
|
Foreign currency translation
|
1.6
|
|
|
(0.1
|
)
|
|
1.3
|
|
|
(2.2
|
)
|
|
(0.9
|
)
|
|
3.5
|
|
December 31, 2010 AUM
|
616.5
|
|
|
415.4
|
|
|
27.9
|
|
|
92.1
|
|
|
35.3
|
|
|
45.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2009 AUM
(2)
|
377.1
|
|
|
252.7
|
|
|
23.8
|
|
|
57.1
|
|
|
22.3
|
|
|
21.2
|
|
Long-term inflows
|
106.1
|
|
|
68.7
|
|
|
1.9
|
|
|
18.4
|
|
|
9.9
|
|
|
7.2
|
|
Long-term outflows
|
(89.5
|
)
|
|
(58.3
|
)
|
|
(5.3
|
)
|
|
(7.5
|
)
|
|
(10.8
|
)
|
|
(7.6
|
)
|
Long-term net flows
|
16.6
|
|
|
10.4
|
|
|
(3.4
|
)
|
|
10.9
|
|
|
(0.9
|
)
|
|
(0.4
|
)
|
Net flows in institutional money market funds
|
(0.1
|
)
|
|
2.8
|
|
|
(0.1
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
Market gains and losses/reinvestment
|
54.7
|
|
|
28.2
|
|
|
4.4
|
|
|
11.2
|
|
|
3.8
|
|
|
7.1
|
|
Foreign currency translation
|
11.2
|
|
|
—
|
|
|
4.3
|
|
|
5.7
|
|
|
0.6
|
|
|
0.6
|
|
December 31, 2009 AUM
|
459.5
|
|
|
294.1
|
|
|
29.0
|
|
|
84.9
|
|
|
24.4
|
|
|
27.1
|
|
|
See accompanying notes to these AUM tables on the following page.
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
(7)
|
||||||
January 1, 2011 AUM
|
80.8
|
|
|
77.3
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
2.3
|
|
Long-term inflows
|
71.3
|
|
|
67.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
3.3
|
|
Long-term outflows
|
(53.8
|
)
|
|
(53.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
Long-term net flows
|
17.5
|
|
|
14.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
3.3
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
(2.1
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
December 31, 2011 AUM
|
96.3
|
|
|
89.6
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2010 AUM
(2)
|
53.0
|
|
|
50.2
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.7
|
|
Long-term inflows
|
70.1
|
|
|
54.1
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
15.8
|
|
Long-term outflows
|
(65.8
|
)
|
|
(46.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
(18.6
|
)
|
Long-term net flows
|
4.3
|
|
|
7.2
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(2.8
|
)
|
Net flows in institutional money market funds
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Market gains and losses/reinvestment
|
7.6
|
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
1.2
|
|
Acquisitions/dispositions, net
|
14.4
|
|
|
13.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Foreign currency translation
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
December 31, 2010 AUM
|
80.8
|
|
|
77.3
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2009 AUM
(2)
|
30.5
|
|
|
28.8
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
1.1
|
|
Long-term inflows
|
40.4
|
|
|
40.0
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
Long-term outflows
|
(29.6
|
)
|
|
(29.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Long-term net flows
|
10.8
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses/reinvestment
|
11.4
|
|
|
10.8
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.4
|
|
Foreign currency translation
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
December 31, 2009 AUM
|
53.0
|
|
|
50.2
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.7
|
|
(1)
|
Channel refers to the distribution channel from which the AUM originated. Retail AUM arose from client investments into funds available to the public with shares or units. Institutional AUM originated from individual corporate clients, endowments, foundations, government authorities, universities, or charities. Private Wealth Management AUM arose from high net worth client investments.
|
(2)
|
The beginning balances were adjusted to reflect certain asset reclassifications.
|
(3)
|
Asset classes are descriptive groupings of AUM by common type of underlying investments.
|
(4)
|
See Part I, Item 1, “Business - Objectives by Asset Class” for a description of the investment objectives included within the Alternatives asset class.
|
(5)
|
Ending Money Market AUM includes
$69.4 billion
in institutional money market AUM and
$4.6 billion
in retail money market AUM.
|
(6)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
(7)
|
Net flows in Asia in 2010 were driven by an inflow of $15.8 billion in the three months ended June 30, 2010 and an outflow of $18.6 billion in the three months ended December 31, 2010 related to a passive mandate in Japan which was a post-close direct consequence of the acquired business.
|
$ in millions
|
Before Consolidation
(1)
|
|
Consolidated Investment Products
|
|
Adjustments
(1)(2)
|
|
Total
|
||||
Year ended December 31, 2011
|
|
|
|
|
|
|
|
||||
Total operating revenues
|
4,139.4
|
|
|
0.1
|
|
|
(47.3
|
)
|
|
4,092.2
|
|
Total operating expenses
|
3,181.1
|
|
|
60.3
|
|
|
(47.3
|
)
|
|
3,194.1
|
|
Operating income
|
958.3
|
|
|
(60.2
|
)
|
|
—
|
|
|
898.1
|
|
Equity in earnings of unconsolidated affiliates
|
30.7
|
|
|
—
|
|
|
(0.2
|
)
|
|
30.5
|
|
Interest and dividend income
|
19.3
|
|
|
307.2
|
|
|
(8.3
|
)
|
|
318.2
|
|
Other investment income/(losses)
|
49.0
|
|
|
(159.2
|
)
|
|
20.3
|
|
|
(89.9
|
)
|
Interest expense
|
(61.8
|
)
|
|
(195.3
|
)
|
|
8.3
|
|
|
(248.8
|
)
|
Income before income taxes
|
995.5
|
|
|
(107.5
|
)
|
|
20.1
|
|
|
908.1
|
|
Income tax provision
|
(286.1
|
)
|
|
—
|
|
|
—
|
|
|
(286.1
|
)
|
Net income
|
709.4
|
|
|
(107.5
|
)
|
|
20.1
|
|
|
622.0
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
0.1
|
|
|
107.6
|
|
|
—
|
|
|
107.7
|
|
Net income attributable to common shareholders
|
709.5
|
|
|
0.1
|
|
|
20.1
|
|
|
729.7
|
|
$ in millions
|
Before Consolidation
(1)
|
|
Consolidated Investment Products
|
|
Adjustments
(1)(2)
|
|
Total
|
||||
Year ended December 31, 2010
|
|
|
|
|
|
|
|
||||
Total operating revenues
|
3,532.7
|
|
|
0.3
|
|
|
(45.3
|
)
|
|
3,487.7
|
|
Total operating expenses
|
2,887.8
|
|
|
55.3
|
|
|
(45.3
|
)
|
|
2,897.8
|
|
Operating income
|
644.9
|
|
|
(55.0
|
)
|
|
—
|
|
|
589.9
|
|
Equity in earnings of unconsolidated affiliates
|
40.8
|
|
|
—
|
|
|
(0.6
|
)
|
|
40.2
|
|
Interest and dividend income
|
10.4
|
|
|
246.0
|
|
|
(5.1
|
)
|
|
251.3
|
|
Other investment income/(losses)
|
15.6
|
|
|
107.6
|
|
|
6.4
|
|
|
129.6
|
|
Interest expense
|
(58.6
|
)
|
|
(123.7
|
)
|
|
5.1
|
|
|
(177.2
|
)
|
Income before income taxes
|
653.1
|
|
|
174.9
|
|
|
5.8
|
|
|
833.8
|
|
Income tax provision
|
(197.0
|
)
|
|
—
|
|
|
—
|
|
|
(197.0
|
)
|
Net income
|
456.1
|
|
|
174.9
|
|
|
5.8
|
|
|
636.8
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
(0.2
|
)
|
|
(170.8
|
)
|
|
(0.1
|
)
|
|
(171.1
|
)
|
Net income attributable to common shareholders
|
455.9
|
|
|
4.1
|
|
|
5.7
|
|
|
465.7
|
|
(1)
|
The Before Consolidation column includes Invesco's equity interests in the investment products accounted for as equity method (private equity and real estate partnership funds) and available-for-sale investments (CLOs). Upon consolidation of the CLOs, the company's and the CLOs' accounting policies are effectively aligned, resulting in the reclassification of the company's
gain
for the year ended
December 31, 2011
of
$20.3 million
(representing the increase in the market value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses (year ended
December 31, 2010
:
$6.4 million
). The company's gain on its investment in the CLOs (before consolidation) eliminates with the company's share of the offsetting loss on the CLOs' debt. The net income arising from consolidation of CLOs is therefore completely attributed to other investors in these CLOs, as the company's share has been eliminated through consolidation. The Before Consolidation column does not include any other adjustments related to non-GAAP financial measure presentation.
|
(2)
|
Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products, primarily the elimination of management fees expensed by the funds and recorded as operating revenues (before consolidation) by the company.
|
$ in millions
|
2011
|
|
2010
|
|
$ Change
|
|
% Change
|
||||
Investment management fees
|
3,138.5
|
|
|
2,720.9
|
|
|
417.6
|
|
|
15.3
|
%
|
Service and distribution fees
|
780.3
|
|
|
645.5
|
|
|
134.8
|
|
|
20.9
|
%
|
Performance fees
|
37.9
|
|
|
26.1
|
|
|
11.8
|
|
|
45.2
|
%
|
Other
|
135.5
|
|
|
95.2
|
|
|
40.3
|
|
|
42.3
|
%
|
Total operating revenues
|
4,092.2
|
|
|
3,487.7
|
|
|
604.5
|
|
|
17.3
|
%
|
Third-party distribution, service and advisory expenses
|
(1,282.5
|
)
|
|
(1,053.8
|
)
|
|
(228.7
|
)
|
|
21.7
|
%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
41.4
|
|
|
42.2
|
|
|
(0.8
|
)
|
|
(1.9
|
)%
|
Management fees earned from consolidated investment products
|
46.8
|
|
|
45.3
|
|
|
1.5
|
|
|
3.3
|
%
|
Performance fees earned from consolidated investment products
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
N/A
|
|
Other revenues recorded by consolidated investment products
|
—
|
|
|
(0.3
|
)
|
|
0.3
|
|
|
(100.0
|
)%
|
Net revenues
|
2,898.4
|
|
|
2,521.1
|
|
|
377.3
|
|
|
15.0
|
%
|
$ in millions
|
2011
|
|
2010
|
|
$ Change
|
|
% Change
|
||||
Employee compensation
|
1,246.2
|
|
|
1,114.9
|
|
|
131.3
|
|
|
11.8
|
%
|
Third-party distribution, service and advisory
|
1,282.5
|
|
|
1,053.8
|
|
|
228.7
|
|
|
21.7
|
%
|
Marketing
|
86.0
|
|
|
78.5
|
|
|
7.5
|
|
|
9.6
|
%
|
Property, office and technology
|
254.6
|
|
|
238.4
|
|
|
16.2
|
|
|
6.8
|
%
|
General and administrative
|
295.4
|
|
|
262.2
|
|
|
33.2
|
|
|
12.7
|
%
|
Transaction and integration
|
29.4
|
|
|
150.0
|
|
|
(120.6
|
)
|
|
(80.4
|
)%
|
Total operating expenses
|
3,194.1
|
|
|
2,897.8
|
|
|
296.3
|
|
|
10.2
|
%
|
$ in millions
|
2011
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2010
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Employee compensation
|
1,246.2
|
|
|
39.0
|
%
|
|
30.5
|
%
|
|
1,114.9
|
|
|
38.5
|
%
|
|
32.0
|
%
|
Third-party distribution, service and advisory
|
1,282.5
|
|
|
40.2
|
%
|
|
31.3
|
%
|
|
1,053.8
|
|
|
36.4
|
%
|
|
30.2
|
%
|
Marketing
|
86.0
|
|
|
2.7
|
%
|
|
2.1
|
%
|
|
78.5
|
|
|
2.7
|
%
|
|
2.3
|
%
|
Property, office and technology
|
254.6
|
|
|
8.0
|
%
|
|
6.2
|
%
|
|
238.4
|
|
|
8.2
|
%
|
|
6.8
|
%
|
General and administrative
|
295.4
|
|
|
9.2
|
%
|
|
7.2
|
%
|
|
262.2
|
|
|
9.0
|
%
|
|
7.5
|
%
|
Transaction and integration
|
29.4
|
|
|
0.9
|
%
|
|
0.7
|
%
|
|
150.0
|
|
|
5.2
|
%
|
|
4.3
|
%
|
Total operating expenses
|
3,194.1
|
|
|
100.0
|
%
|
|
78.0
|
%
|
|
2,897.8
|
|
|
100.0
|
%
|
|
83.1
|
%
|
|
Year ended December 31,
|
|
|
|
|
||||||
$ in millions
|
2011
|
|
2010
|
|
$ Change
|
|
% Change
|
||||
Equity in earnings of unconsolidated affiliates
|
30.5
|
|
|
40.2
|
|
|
(9.7
|
)
|
|
(24.1
|
)%
|
Interest and dividend income
|
11.0
|
|
|
10.4
|
|
|
0.6
|
|
|
5.8
|
%
|
Interest income of consolidated investment products
|
307.2
|
|
|
240.9
|
|
|
66.3
|
|
|
27.5
|
%
|
Gains/(losses) of consolidated investment products, net
|
(138.9
|
)
|
|
114.0
|
|
|
(252.9
|
)
|
|
N/A
|
|
Interest expense
|
(61.8
|
)
|
|
(58.6
|
)
|
|
(3.2
|
)
|
|
5.5
|
%
|
Interest expense of consolidated investment products
|
(187.0
|
)
|
|
(118.6
|
)
|
|
(68.4
|
)
|
|
57.7
|
%
|
Other gains and losses, net
|
49.0
|
|
|
15.6
|
|
|
33.4
|
|
|
214.1
|
%
|
Total other income and expenses
|
10.0
|
|
|
243.9
|
|
|
(233.9
|
)
|
|
(95.9
|
)%
|
$ in millions
|
Before Consolidation
(1)
|
|
Consolidated Investment Products
(2)
|
|
Adjustments
(1)(3)
|
|
Total
|
||||
Year ended December 31, 2010
|
|
|
|
|
|
|
|
||||
Total operating revenues
|
3,532.7
|
|
|
0.3
|
|
|
(45.3
|
)
|
|
3,487.7
|
|
Total operating expenses
|
2,887.8
|
|
|
55.3
|
|
|
(45.3
|
)
|
|
2,897.8
|
|
Operating income
|
644.9
|
|
|
(55.0
|
)
|
|
—
|
|
|
589.9
|
|
Equity in earnings of unconsolidated affiliates
|
40.8
|
|
|
—
|
|
|
(0.6
|
)
|
|
40.2
|
|
Interest and dividend income
|
10.4
|
|
|
246.0
|
|
|
(5.1
|
)
|
|
251.3
|
|
Other investment income/(losses)
|
15.6
|
|
|
107.6
|
|
|
6.4
|
|
|
129.6
|
|
Interest expense
|
(58.6
|
)
|
|
(123.7
|
)
|
|
5.1
|
|
|
(177.2
|
)
|
Income before income taxes
|
653.1
|
|
|
174.9
|
|
|
5.8
|
|
|
833.8
|
|
Income tax provision
|
(197.0
|
)
|
|
—
|
|
|
—
|
|
|
(197.0
|
)
|
Net income
|
456.1
|
|
|
174.9
|
|
|
5.8
|
|
|
636.8
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
(0.2
|
)
|
|
(170.8
|
)
|
|
(0.1
|
)
|
|
(171.1
|
)
|
Net income attributable to common shareholders
|
455.9
|
|
|
4.1
|
|
|
5.7
|
|
|
465.7
|
|
$ in millions
|
Before Consolidation
|
|
Consolidated Investment Products
(2)
|
|
Adjustments
(3)
|
|
Total
|
||||
Year ended December 31, 2009
|
|
|
|
|
|
|
|
||||
Total operating revenues
|
2,633.3
|
|
|
1.9
|
|
|
(7.9
|
)
|
|
2,627.3
|
|
Total operating expenses
|
(2,139.5
|
)
|
|
(11.4
|
)
|
|
7.9
|
|
|
(2,143.0
|
)
|
Operating income
|
493.8
|
|
|
(9.5
|
)
|
|
—
|
|
|
484.3
|
|
Equity in earnings of unconsolidated affiliates
|
24.5
|
|
|
—
|
|
|
2.5
|
|
|
27.0
|
|
Interest and dividend income
|
9.8
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
Other investment income/(losses)
|
7.8
|
|
|
(106.9
|
)
|
|
—
|
|
|
(99.1
|
)
|
Interest expense
|
(64.5
|
)
|
|
—
|
|
|
—
|
|
|
(64.5
|
)
|
Income before income taxes
|
471.4
|
|
|
(116.4
|
)
|
|
2.5
|
|
|
357.5
|
|
Income tax provision
|
(148.2
|
)
|
|
—
|
|
|
—
|
|
|
(148.2
|
)
|
Net income
|
323.2
|
|
|
(116.4
|
)
|
|
2.5
|
|
|
209.3
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
(0.7
|
)
|
|
113.9
|
|
|
—
|
|
|
113.2
|
|
Net income attributable to common shareholders
|
322.5
|
|
|
(2.5
|
)
|
|
2.5
|
|
|
322.5
|
|
(1)
|
The Before Consolidation column includes Invesco's equity interests in the investment products accounted for as equity method (private equity and real estate partnership funds) and available-for-sale investments (CLOs). Upon consolidation of the CLOs, the company's and the CLOs' accounting policies are effectively aligned, resulting in the reclassification of the company's gain for the year ended December 31, 2010 of $6.4 million (representing the increase in the market value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses. The company's gain on its investment in the CLOs (before consolidation) eliminates with the company's share of the offsetting loss on the CLOs' debt. The net income arising from consolidation of CLOs is therefore completely attributed to other investors in these CLOs, as the company's share has been eliminated through consolidation. The Before Consolidation column does not include any other adjustments related to non-GAAP financial measure presentation.
|
(2)
|
The company adopted guidance now encompassed in ASC Topic 810 on January 1, 2010 resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.
|
(3)
|
Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products, primarily the elimination of management fees expensed by the funds and recorded as operating revenues (before consolidation) by the company.
|
$ in millions
|
2010
|
|
2009
|
|
$ Change
|
|
% Change
|
||||
Investment management fees
|
2,720.9
|
|
|
2,120.2
|
|
|
600.7
|
|
|
28.3
|
%
|
Service and distribution fees
|
645.5
|
|
|
412.6
|
|
|
232.9
|
|
|
56.4
|
%
|
Performance fees
|
26.1
|
|
|
30.0
|
|
|
(3.9
|
)
|
|
(13.0
|
)%
|
Other
|
95.2
|
|
|
64.5
|
|
|
30.7
|
|
|
47.6
|
%
|
Total operating revenues
|
3,487.7
|
|
|
2,627.3
|
|
|
860.4
|
|
|
32.7
|
%
|
Third-party distribution, service and advisory expenses
|
(1,053.8
|
)
|
|
(737.0
|
)
|
|
(316.8
|
)
|
|
43.0
|
%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
42.2
|
|
|
44.7
|
|
|
(2.5
|
)
|
|
(5.6
|
)%
|
Management fees earned from consolidated investment products
|
45.3
|
|
|
8.0
|
|
|
37.3
|
|
|
N/A
|
|
Other revenues recorded by consolidated investment products
|
(0.3
|
)
|
|
(2.0
|
)
|
|
1.7
|
|
|
85.0
|
%
|
Net revenues
|
2,521.1
|
|
|
1,941.0
|
|
|
580.1
|
|
|
29.9
|
%
|
$ in millions
|
2010
|
|
2009
|
|
$ Change
|
|
% Change
|
||||
Employee compensation
|
1,114.9
|
|
|
950.8
|
|
|
164.1
|
|
|
17.3
|
%
|
Third-party distribution, service and advisory
|
1,053.8
|
|
|
737.0
|
|
|
316.8
|
|
|
43.0
|
%
|
Marketing
|
78.5
|
|
|
65.3
|
|
|
13.2
|
|
|
20.2
|
%
|
Property, office and technology
|
238.4
|
|
|
212.3
|
|
|
26.1
|
|
|
12.3
|
%
|
General and administrative
|
262.2
|
|
|
166.8
|
|
|
95.4
|
|
|
57.2
|
%
|
Transaction and integration
|
150.0
|
|
|
10.8
|
|
|
139.2
|
|
|
N/A
|
|
Total operating expenses
|
2,897.8
|
|
|
2,143.0
|
|
|
754.8
|
|
|
35.2
|
%
|
$ in millions
|
2010
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2009
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Employee compensation
|
1,114.9
|
|
|
38.5
|
%
|
|
32.0
|
%
|
|
950.8
|
|
|
44.4
|
%
|
|
36.2
|
%
|
Third-party distribution, service and advisory
|
1,053.8
|
|
|
36.4
|
%
|
|
30.2
|
%
|
|
737.0
|
|
|
34.4
|
%
|
|
28.0
|
%
|
Marketing
|
78.5
|
|
|
2.7
|
%
|
|
2.3
|
%
|
|
65.3
|
|
|
3.0
|
%
|
|
2.5
|
%
|
Property, office and technology
|
238.4
|
|
|
8.2
|
%
|
|
6.8
|
%
|
|
212.3
|
|
|
9.9
|
%
|
|
8.1
|
%
|
General and administrative
|
262.2
|
|
|
9.0
|
%
|
|
7.5
|
%
|
|
166.8
|
|
|
7.8
|
%
|
|
6.3
|
%
|
Transaction and integration
|
150.0
|
|
|
5.2
|
%
|
|
4.3
|
%
|
|
10.8
|
|
|
0.5
|
%
|
|
0.4
|
%
|
Total operating expenses
|
2,897.8
|
|
|
100.0
|
%
|
|
83.1
|
%
|
|
2,143.0
|
|
|
100.0
|
%
|
|
81.5
|
%
|
|
Year ended December 31,
|
|
|
|
|
||||||
$ in millions
|
2010
|
|
2009
|
|
$ Change
|
|
% Change
|
||||
Equity in earnings of unconsolidated affiliates
|
40.2
|
|
|
27.0
|
|
|
13.2
|
|
|
48.9
|
%
|
Interest and dividend income
|
10.4
|
|
|
9.8
|
|
|
0.6
|
|
|
6.1
|
%
|
Interest income of consolidated investment products
|
240.9
|
|
|
—
|
|
|
240.9
|
|
|
N/A
|
|
Gains/(losses) of consolidated investment products, net
|
114.0
|
|
|
(106.9
|
)
|
|
220.9
|
|
|
N/A
|
|
Interest expense
|
(58.6
|
)
|
|
(64.5
|
)
|
|
5.9
|
|
|
9.1
|
%
|
Interest expense of consolidated investment products
|
(118.6
|
)
|
|
—
|
|
|
(118.6
|
)
|
|
N/A
|
|
Other gains and losses, net
|
15.6
|
|
|
7.8
|
|
|
7.8
|
|
|
100
|
%
|
Total other income and expenses
|
243.9
|
|
|
(126.8
|
)
|
|
370.7
|
|
|
N/A
|
|
$ in millions, except per share data
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
||||||||||
Operating revenues, U.S. GAAP basis
|
4,092.2
|
|
|
3,487.7
|
|
|
2,627.3
|
|
|
3,307.6
|
|
|
3,878.9
|
|
|||||
Third-party distribution, service and advisory expenses
(1)
|
(1,282.5
|
)
|
|
(1,053.8
|
)
|
|
(737.0
|
)
|
|
(927.8
|
)
|
|
(1,109.7
|
)
|
|||||
Proportional share of net revenues from joint venture arrangements
(2)
|
41.4
|
|
|
42.2
|
|
|
44.7
|
|
|
57.3
|
|
|
60.6
|
|
|||||
Management fees earned from consolidated investment products eliminated upon consolidation
(3)
|
46.8
|
|
|
45.3
|
|
|
8.0
|
|
|
6.2
|
|
|
8.7
|
|
|||||
Performance fees earned from consolidated investment products eliminated upon consolidation
(3)
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other revenues recorded by consolidated investment products
(3)
|
—
|
|
|
(0.3
|
)
|
|
(2.0
|
)
|
|
(5.4
|
)
|
|
(15.2
|
)
|
|||||
Net revenues
|
2,898.4
|
|
|
2,521.1
|
|
|
1,941.0
|
|
|
2,437.9
|
|
|
2,823.3
|
|
|||||
Operating income, U.S. GAAP basis
|
898.1
|
|
|
589.9
|
|
|
484.3
|
|
|
747.8
|
|
|
994.3
|
|
|||||
Proportional share of operating income from joint venture investments
(2)
|
19.2
|
|
|
22.9
|
|
|
28.4
|
|
|
39.7
|
|
|
45.5
|
|
|||||
Transaction and integration charges
(4)
|
29.4
|
|
|
150.0
|
|
|
10.8
|
|
|
—
|
|
|
—
|
|
|||||
Amortization of acquisition-related prepaid compensation
(4)
|
15.0
|
|
|
20.0
|
|
|
20.0
|
|
|
20.0
|
|
|
25.0
|
|
|||||
Amortization of other intangibles
(4)
|
42.2
|
|
|
30.3
|
|
|
12.6
|
|
|
13.3
|
|
|
12.0
|
|
|||||
Change in contingent consideration estimates
|
(13.2
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
5.8
|
|
|
9.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consolidation of investment products
(3)
|
60.3
|
|
|
54.9
|
|
|
9.5
|
|
|
5.3
|
|
|
1.8
|
|
|||||
European infrastructure
(6)
|
18.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other reconciling items
(7)
|
(6.7
|
)
|
|
24.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Adjusted operating income
|
1,068.9
|
|
|
897.7
|
|
|
565.6
|
|
|
826.1
|
|
|
1,078.6
|
|
|||||
Operating margin*
|
21.9
|
%
|
|
16.9
|
%
|
|
18.4
|
%
|
|
22.6
|
%
|
|
25.6
|
%
|
|||||
Adjusted operating margin**
|
36.9
|
%
|
|
35.6
|
%
|
|
29.1
|
%
|
|
33.9
|
%
|
|
38.2
|
%
|
|||||
Net income attributable to common shareholders, U.S. GAAP basis
|
729.7
|
|
|
465.7
|
|
|
322.5
|
|
|
481.7
|
|
|
673.6
|
|
|||||
Transaction and integration charges, net of tax
(4)
|
18.2
|
|
|
103.1
|
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|||||
Amortization of acquisition-related prepaid compensation
(4)
|
15.0
|
|
|
20.0
|
|
|
20.0
|
|
|
20.0
|
|
|
25.0
|
|
|||||
Amortization of other intangibles, net of tax
(4)
|
37.8
|
|
|
27.4
|
|
|
12.3
|
|
|
13.0
|
|
|
11.7
|
|
|||||
Change in contingent consideration estimates
(4)
|
(13.2
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
2.5
|
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deferred income taxes on intangible assets
(4)
|
27.0
|
|
|
21.1
|
|
|
14.4
|
|
|
12.4
|
|
|
7.9
|
|
|||||
Consolidation of investment products
(3)
|
(20.2
|
)
|
|
(6.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
European infrastructure, net of tax
(6)
|
16.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other reconciling items
(7)
|
(32.1
|
)
|
|
17.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Adjusted net income attributable to common shareholders
|
781.6
|
|
|
639.7
|
|
|
378.1
|
|
|
527.1
|
|
|
718.2
|
|
|||||
Average shares outstanding - diluted
|
464.7
|
|
|
463.2
|
|
|
423.6
|
|
|
399.1
|
|
|
411.9
|
|
|||||
Diluted EPS
|
|
$1.57
|
|
|
|
$1.01
|
|
|
|
$0.76
|
|
|
|
$1.21
|
|
|
|
$1.64
|
|
Adjusted diluted EPS***
|
|
$1.68
|
|
|
|
$1.38
|
|
|
|
$0.89
|
|
|
|
$1.32
|
|
|
|
$1.74
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to operating income divided by net revenues.
|
***
|
Adjusted diluted EPS is equal to adjusted net income divided by the weighted average shares outstanding amount used in the calculation of diluted EPS.
|
(1)
|
Third-party distribution, service and advisory expenses
|
(2)
|
Proportional share of net revenues and operating income from joint venture investments
|
(3)
|
Consolidated investment products
|
(4)
|
Acquisition-related reconciling items
|
(5)
|
Market movement on deferred compensation plan liabilities
|
(6)
|
European infrastructure expenses
|
(7)
|
Other reconciling items
|
$ in millions
|
Before Consolidation
(1)
|
|
Consolidated Investment Products
|
|
Adjustments
(2)
|
|
Total
|
||||
As of December 31, 2011
|
|
|
|
|
|
|
|
||||
Current assets
|
3,352.7
|
|
|
511.3
|
|
|
(29.9
|
)
|
|
3,834.1
|
|
Non-current assets
|
8,976.5
|
|
|
6,628.9
|
|
|
(92.5
|
)
|
|
15,512.9
|
|
Total assets
|
12,329.2
|
|
|
7,140.2
|
|
|
(122.4
|
)
|
|
19,347.0
|
|
Current liabilities
|
2,818.9
|
|
|
185.4
|
|
|
(29.9
|
)
|
|
2,974.4
|
|
Long-term debt of consolidated investment products
|
—
|
|
|
5,563.3
|
|
|
(50.4
|
)
|
|
5,512.9
|
|
Other non-current liabilities
|
1,722.1
|
|
|
—
|
|
|
—
|
|
|
1,722.1
|
|
Total liabilities
|
4,541.0
|
|
|
5,748.7
|
|
|
(80.3
|
)
|
|
10,209.4
|
|
Retained earnings appropriated for investors in consolidated investment products
|
—
|
|
|
334.3
|
|
|
—
|
|
|
334.3
|
|
Other equity attributable to common shareholders
|
7,783.7
|
|
|
43.2
|
|
|
(42.1
|
)
|
|
7,784.8
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
4.5
|
|
|
1,014.0
|
|
|
—
|
|
|
1,018.5
|
|
Total liabilities and equity
|
12,329.2
|
|
|
7,140.2
|
|
|
(122.4
|
)
|
|
19,347.0
|
|
$ in millions
|
Before Consolidation
(1)
|
|
Consolidated Investment Products
|
|
Adjustments
(2)
|
|
Total
|
||||
As of December 31, 2010
|
|
|
|
|
|
|
|
||||
Current assets
|
3,480.0
|
|
|
816.8
|
|
|
(22.3
|
)
|
|
4,274.5
|
|
Non-current assets
|
9,025.1
|
|
|
7,205.5
|
|
|
(61.0
|
)
|
|
16,169.6
|
|
Total assets
|
12,505.1
|
|
|
8,022.3
|
|
|
(83.3
|
)
|
|
20,444.1
|
|
Current liabilities
|
2,777.9
|
|
|
508.9
|
|
|
(22.3
|
)
|
|
3,264.5
|
|
Long-term debt of consolidated investment products
|
—
|
|
|
5,888.2
|
|
|
(22.8
|
)
|
|
5,865.4
|
|
Other non-current liabilities
|
1,953.3
|
|
|
—
|
|
|
—
|
|
|
1,953.3
|
|
Total liabilities
|
4,731.2
|
|
|
6,397.1
|
|
|
(45.1
|
)
|
|
11,083.2
|
|
Retained earnings appropriated for investors in consolidated investment products
|
—
|
|
|
495.5
|
|
|
—
|
|
|
495.5
|
|
Other equity attributable to common shareholders
|
7,769.1
|
|
|
38.2
|
|
|
(38.2
|
)
|
|
7,769.1
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
4.8
|
|
|
1,091.5
|
|
|
—
|
|
|
1,096.3
|
|
Total liabilities and equity
|
12,505.1
|
|
|
8,022.3
|
|
|
(83.3
|
)
|
|
20,444.1
|
|
(1)
|
The Before Consolidation column includes Invesco's equity interest in the investment products, accounted for as equity method and available-for-sale investments and does not include any other adjustments related to non-GAAP financial measure presentation.
|
(2)
|
Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products and the elimination of the company’s equity at risk recorded as investments by the company (before consolidation) against either the equity (private equity and real estate partnership funds) or debt (CLOs) of the consolidated investment products.
|
$ in millions
|
2011
|
|
2010
|
|
$ Change
|
|
% Change
|
||||
Cash and cash equivalents
|
727.4
|
|
|
740.5
|
|
|
(13.1
|
)
|
|
(1.8
|
)%
|
Unsettled fund receivables
|
444.4
|
|
|
513.4
|
|
|
(69.0
|
)
|
|
(13.4
|
)%
|
Current investments
|
283.7
|
|
|
308.8
|
|
|
(25.1
|
)
|
|
(8.1
|
)%
|
Assets held for policyholders
|
1,243.5
|
|
|
1,295.4
|
|
|
(51.9
|
)
|
|
(4.0
|
)%
|
Non-current investments
|
200.8
|
|
|
164.4
|
|
|
36.4
|
|
|
22.1
|
%
|
Investments of consolidated investment products
|
6,629.0
|
|
|
7,206.0
|
|
|
(577.0
|
)
|
|
(8.0
|
)%
|
Intangible assets, net
|
1,322.8
|
|
|
1,337.2
|
|
|
(14.4
|
)
|
|
(1.1
|
)%
|
Goodwill
|
6,907.9
|
|
|
6,980.2
|
|
|
(72.3
|
)
|
|
(1.0
|
)%
|
Unsettled fund payables
|
439.6
|
|
|
504.8
|
|
|
(65.2
|
)
|
|
(12.9
|
)%
|
Policyholder payables
|
1,243.5
|
|
|
1,295.4
|
|
|
(51.9
|
)
|
|
(4.0
|
)%
|
Current maturities of total debt
|
215.1
|
|
|
—
|
|
|
215.1
|
|
|
N/A
|
|
Long-term debt
|
1,069.6
|
|
|
1,315.7
|
|
|
(246.1
|
)
|
|
(18.7
|
)%
|
Long-term debt of consolidated investment products
|
5,512.9
|
|
|
5,865.4
|
|
|
(352.5
|
)
|
|
(6.0
|
)%
|
$ in millions
|
Before Consolidation
|
|
Consolidated Investment Products
|
|
Adjustments
|
|
Total
|
||||
For the year ended December 31, 2011
|
|
|
|
|
|
|
|
||||
Net income
|
709.4
|
|
|
(107.5
|
)
|
|
20.1
|
|
|
622.0
|
|
Net purchases of trading investments
|
(11.0
|
)
|
|
—
|
|
|
—
|
|
|
(11.0
|
)
|
Other adjustments to reconcile net income to net cash provided by operating activities
|
231.4
|
|
|
159.2
|
|
|
(20.1
|
)
|
|
370.5
|
|
Changes in cash held by consolidated investment products
|
—
|
|
|
264.2
|
|
|
—
|
|
|
264.2
|
|
Other changes in operating assets and liabilities
|
(127.0
|
)
|
|
(153.9
|
)
|
|
—
|
|
|
(280.9
|
)
|
Net cash provided by operating activities
|
802.8
|
|
|
162.0
|
|
|
—
|
|
|
964.8
|
|
Net proceeds of investments by consolidated investment products
|
—
|
|
|
487.6
|
|
|
—
|
|
|
487.6
|
|
Purchases of available for sale and other investments
|
(181.8
|
)
|
|
—
|
|
|
7.0
|
|
|
(174.8
|
)
|
Proceeds from sales and returns of capital of available for sale and other investments
|
169.5
|
|
|
—
|
|
|
(8.1
|
)
|
|
161.4
|
|
Other investing activities
|
(126.1
|
)
|
|
—
|
|
|
—
|
|
|
(126.1
|
)
|
Net cash (used in)/provided by investing activities
|
(138.4
|
)
|
|
487.6
|
|
|
(1.1
|
)
|
|
348.1
|
|
Net capital distributed by consolidated investment products
|
—
|
|
|
(649.6
|
)
|
|
1.1
|
|
|
(648.5
|
)
|
Other financing activities
|
(673.6
|
)
|
|
—
|
|
|
—
|
|
|
(673.6
|
)
|
Net cash provided by/(used in) financing activities
|
(673.6
|
)
|
|
(649.6
|
)
|
|
1.1
|
|
|
(1,322.1
|
)
|
Decrease in cash and cash equivalents
|
(9.2
|
)
|
|
—
|
|
|
—
|
|
|
(9.2
|
)
|
Foreign exchange movement on cash and cash equivalents
|
(3.9
|
)
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
Cash and cash equivalents, beginning of period
|
740.5
|
|
|
—
|
|
|
—
|
|
|
740.5
|
|
Cash and cash equivalents, end of period
|
727.4
|
|
|
—
|
|
|
—
|
|
|
727.4
|
|
$ in millions
|
Before Consolidation
|
|
Consolidated Investment Products
|
|
Adjustments
|
|
Total
|
||||
For the year ended December 31, 2010
|
|
|
|
|
|
|
|
||||
Net income
|
456.1
|
|
|
181.4
|
|
|
(0.7
|
)
|
|
636.8
|
|
Net purchases of trading investments
|
(60.4
|
)
|
|
—
|
|
|
—
|
|
|
(60.4
|
)
|
Other adjustments to reconcile net income to net cash provided by operating activities
|
232.6
|
|
|
(114.0
|
)
|
|
0.7
|
|
|
119.3
|
|
Changes in cash held by consolidated investment products
|
—
|
|
|
(336.2
|
)
|
|
—
|
|
|
(336.2
|
)
|
Other changes in operating assets and liabilities
|
(27.1
|
)
|
|
46.8
|
|
|
—
|
|
|
19.7
|
|
Net cash provided by/(used in) operating activities
|
601.2
|
|
|
(222.0
|
)
|
|
—
|
|
|
379.2
|
|
Net proceeds of investments by consolidated investment products
|
—
|
|
|
498.6
|
|
|
—
|
|
|
498.6
|
|
Purchases of available for sale and other investments
|
(109.1
|
)
|
|
—
|
|
|
5.8
|
|
|
(103.3
|
)
|
Proceeds from sales and returns of capital of available for sale and other investments
|
134.6
|
|
|
—
|
|
|
(2.2
|
)
|
|
132.4
|
|
Other investing activities
|
(865.5
|
)
|
|
—
|
|
|
—
|
|
|
(865.5
|
)
|
Net cash (used in)/provided by investing activities
|
(840.0
|
)
|
|
498.6
|
|
|
3.6
|
|
|
(337.8
|
)
|
Net capital distributed by consolidated investment products
|
—
|
|
|
(276.6
|
)
|
|
(3.6
|
)
|
|
(280.2
|
)
|
Other financing activities
|
214.3
|
|
|
—
|
|
|
—
|
|
|
214.3
|
|
Net cash provided by/(used in) financing activities
|
214.3
|
|
|
(276.6
|
)
|
|
(3.6
|
)
|
|
(65.9
|
)
|
Decrease in cash and cash equivalents
|
(24.5
|
)
|
|
—
|
|
|
—
|
|
|
(24.5
|
)
|
Foreign exchange movement on cash and cash equivalents
|
3.0
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
Cash and cash equivalents, beginning of period
|
762.0
|
|
|
—
|
|
|
—
|
|
|
762.0
|
|
Cash and cash equivalents, end of period
|
740.5
|
|
|
—
|
|
|
—
|
|
|
740.5
|
|
$ in millions
|
Before Consolidation
|
|
Consolidated Investment Products
|
|
Total
|
|||
For the year ended December 31, 2009
|
|
|
|
|
|
|||
Net income
|
323.2
|
|
|
(113.9
|
)
|
|
209.3
|
|
Net purchases of trading investments
|
(28.8
|
)
|
|
—
|
|
|
(28.8
|
)
|
Other adjustments to reconcile net income to net cash provided by operating activities
|
193.6
|
|
|
106.9
|
|
|
300.5
|
|
Changes in cash held by consolidated investment products
|
—
|
|
|
45.0
|
|
|
45.0
|
|
Other changes in operating assets and liabilities
|
(162.2
|
)
|
|
(1.1
|
)
|
|
(163.3
|
)
|
Net cash provided by operating activities
|
325.8
|
|
|
36.9
|
|
|
362.7
|
|
Net proceeds of investments by consolidated investment products
|
—
|
|
|
8.0
|
|
|
8.0
|
|
Other investing activities
|
(110.4
|
)
|
|
—
|
|
|
(110.4
|
)
|
Net cash (used in)/provided by investing activities
|
(110.4
|
)
|
|
8.0
|
|
|
(102.4
|
)
|
Net capital distributed by consolidated investment products
|
—
|
|
|
(44.9
|
)
|
|
(44.9
|
)
|
Other financing activities
|
(55.8
|
)
|
|
—
|
|
|
(55.8
|
)
|
Net cash used in financing activities
|
(55.8
|
)
|
|
(44.9
|
)
|
|
(100.7
|
)
|
Decrease in cash and cash equivalents
|
159.6
|
|
|
—
|
|
|
159.6
|
|
Foreign exchange movement on cash and cash equivalents
|
17.2
|
|
|
—
|
|
|
17.2
|
|
Cash and cash equivalents, beginning of period
|
585.2
|
|
|
—
|
|
|
585.2
|
|
Cash and cash equivalents, end of period
|
762.0
|
|
|
—
|
|
|
762.0
|
|
•
|
net purchases of trading investments of
$11.0 million
. Trading investments are held to provide an economic hedge against staff deferred compensation plan awards together with investments held for a short period, often only a few days, for the purpose of creating a UIT.
|
•
|
net cash generated from the other operating activities of
$813.8 million
, representing net income as adjusted for non-cash items and the changes in operating assets and liabilities. This twelve month period included the use of $383.1 million of cash to pay the annual staff bonuses, related payroll taxes, payroll taxes on annual share award vesting, and annual pension contributions.
|
•
|
net purchases of trading investments of $60.4 million. Trading investments are held to provide an economic hedge against staff deferred compensation plan awards together with investments held for a short period, often only a few days, for the purpose of creating a UIT.
|
•
|
net cash generated from the other operating activities of $661.6 million, representing net income as adjusted for non-cash items and the changes in operating assets and liabilities. This twelve month period included the use of $273.0 million of cash to pay the annual staff bonuses, related payroll taxes, payroll taxes on annual share award vesting, and annual pension contributions, all of which result in increased operating cash utilization in the first half of the calendar year.
|
$ in millions
|
December 31, 2011
|
|
December 31, 2010
|
||
Unsecured Senior Notes:
|
|
|
|
||
5.625% - due April 17, 2012
|
215.1
|
|
|
215.1
|
|
5.375% - due February 27, 2013
|
333.5
|
|
|
333.5
|
|
5.375% - due December 15, 2014
|
197.1
|
|
|
197.1
|
|
Floating rate credit facility expiring June 3, 2016
|
539.0
|
|
|
570.0
|
|
Total debt
|
1,284.7
|
|
|
1,315.7
|
|
Less: current maturities of total debt
|
(215.1
|
)
|
|
—
|
|
Long-term debt
|
1,069.6
|
|
|
1,315.7
|
|
|
2011
|
||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||
Leverage Ratio
|
1.27
|
|
|
1.33
|
|
|
1.13
|
|
|
1.01
|
|
Interest Coverage Ratio
|
17.35
|
|
|
18.89
|
|
|
19.78
|
|
|
20.93
|
|
|
2010
|
||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||
Leverage Ratio
|
0.99
|
|
|
1.60
|
|
|
1.52
|
|
|
1.34
|
|
Interest Coverage Ratio
|
13.06
|
|
|
13.03
|
|
|
16.43
|
|
|
17.26
|
|
Long-term AUM
|
350.6
|
|
|
N/A*
|
|
|
N/A*
|
|
|
N/A*
|
|
|
2009
|
||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||
Leverage Ratio
|
1.48
|
|
|
1.63
|
|
|
1.77
|
|
|
1.11
|
|
Interest Coverage Ratio
|
11.31
|
|
|
9.64
|
|
|
9.12
|
|
|
11.01
|
|
Long-term AUM
|
N/A*
|
|
|
299.0
|
|
|
329.7
|
|
|
343.6
|
|
*
|
Long-term AUM became a debt covenant measure as part a prior credit facility agreement and was discontinued as a financial covenant measure in a later agreement. Long-term AUM was not required to be restated as part of the agreement and therefore amounts have not been adjusted from what was previously reported.
|
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
||||||
$ millions
|
Total
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
||||||
Net income attributable to common shareholders
|
729.7
|
|
|
202.3
|
|
|
166.9
|
|
|
183.0
|
|
|
177.5
|
|
|
Net income attributable to Consolidated Investment Products
|
(20.2
|
)
|
|
(1.9
|
)
|
|
(3.5
|
)
|
|
(5.2
|
)
|
|
(9.6
|
)
|
|
Tax expense
|
286.1
|
|
|
76.0
|
|
|
59.1
|
|
|
75.4
|
|
|
75.6
|
|
|
Amortization/depreciation
|
117.4
|
|
|
22.1
|
|
|
35.3
|
|
|
32.1
|
|
|
27.9
|
|
|
Interest expense
|
61.8
|
|
|
14.3
|
|
|
15.3
|
|
|
16.0
|
|
|
16.2
|
|
|
Share-based compensation expense
|
115.1
|
|
|
29.1
|
|
|
29.2
|
|
|
30.5
|
|
|
26.3
|
|
|
Unrealized gains and losses from investments, net*
|
3.6
|
|
|
(3.8
|
)
|
|
11.4
|
|
|
(1.9
|
)
|
|
(2.1
|
)
|
|
EBITDA**
|
1,293.5
|
|
|
338.1
|
|
|
313.7
|
|
|
329.9
|
|
|
311.8
|
|
|
Adjusted debt**
|
|
$1,304.7
|
|
|
|
|
|
|
|
|
|
||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.01
|
|
|
|
|
|
|
|
|
|
|||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
20.93
|
|
|
|
|
|
|
|
|
|
*
|
Adjustments for unrealized gains and losses from investments, as defined in our credit facility, include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures.
|
**
|
EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBITDA above (a reconciliation from net income attributable to common shareholders) is defined by our credit agreement, and therefore net income attributable to common shareholders is the most appropriate GAAP measure from which to reconcile to EBITDA. The calculation of adjusted debt is defined in our credit facility and equals total debt of
$1,284.7 million
plus
$20.0 million
in letters of credit.
|
•
|
All cash and cash equivalent balances are subject to credit risk, as they represent deposits made by the company with external banks and other institutions. As of
December 31, 2011
, our maximum exposure to credit risk related to our cash and cash equivalent balances is
$727.4 million
. Of this amount, cash and cash equivalents invested in affiliated money market funds (related parties) totaled
$257.7 million
at
December 31, 2011
.
|
•
|
Certain trust subsidiaries of the company accept deposits and place deposits with other institutions on behalf of our customers. As of
December 31, 2011
, our exposure to credit risk related to these transactions is
$2.9 million
.
|
$ in millions
|
Total
(4)(5)
|
|
Within 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than 5 Years
|
|||||
Total debt
|
1,284.7
|
|
|
215.1
|
|
|
530.6
|
|
|
539.0
|
|
|
—
|
|
Estimated interest payments on total debt
(1)
|
90.6
|
|
|
40.1
|
|
|
39.2
|
|
|
11.3
|
|
|
—
|
|
Operating leases
(2)
|
618.0
|
|
|
69.4
|
|
|
133.1
|
|
|
127.0
|
|
|
288.5
|
|
Defined benefit pension and postretirement medical obligations
(3)
|
43.8
|
|
|
8.3
|
|
|
26.3
|
|
|
9.2
|
|
|
N/A
|
|
Total
|
2,037.1
|
|
|
332.9
|
|
|
729.2
|
|
|
686.5
|
|
|
288.5
|
|
(1)
|
Total debt includes
$745.7 million
of fixed rate debt. Fixed interest payments are therefore reflected in the table above in the periods they are due. The credit facility,
$539.0 million
outstanding at
December 31, 2011
, provides for borrowings of various maturities. Interest is payable based upon LIBOR, Prime, Federal Funds or other bank-provided rates in existence at the time of each borrowing.
|
(2)
|
Operating leases reflect obligations for leased building space. See Item 8, Financial Statements and Supplementary Data - Note 14, “Operating Leases” for sublease information.
|
(3)
|
Expected future contributions to defined benefit plans of
$43.8 million
are estimated for the next five years, and are comprised of
$31.8 million
related to pension plans and
$12.0 million
related to a postretirement medical plan. See Item 8, Financial Statements and Supplementary Data - Note 13, “Retirement Benefit Plans” for detailed benefit pension and postretirement plan information.
|
(4)
|
The company has capital commitments into co-invested funds that are to be drawn down over the life of the partnership as investment opportunities are identified. At
December 31, 2011
, the company's undrawn capital commitments were
$161.2 million
. See Note 19, “Commitments and Contingencies” for additional details.
|
(5)
|
Due to the uncertainty with respect to the timing of future cash flows associated with unrecognized tax benefits at
December 31, 2011
, the company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore,
$19.5 million
of gross unrecognized tax benefits have been excluded from the contractual obligations table above. See Item 8, Financial Statements and Supplementary Data, Note 16 - “Taxation” for a discussion on income taxes.
|
•
|
The probability that the company will be unable to collect all amounts due according to the contractual terms of a debt security not impaired at acquisition;
|
•
|
The length of time and the extent to which the market value has been less than cost;
|
•
|
The financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer;
|
•
|
The intent and ability of the company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value;
|
•
|
The decline in the security's value due to an increase in market interest rates or a change in foreign exchange rates since acquisition;
|
•
|
Determination that the security is not realizable; or
|
•
|
An adverse change in estimated cash flows of a beneficial interest.
|
•
|
Causing the value of AUM to decrease.
|
•
|
Causing the returns realized on AUM to decrease (impacting performance fees).
|
•
|
Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve.
|
•
|
Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage.
|
•
|
Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues.
|
$ in millions
|
Carrying Value
|
|
Fair Value assuming 20% increase
|
|
Fair Value assuming 20% decrease
|
|||
December 31, 2011
|
|
|
|
|
|
|||
Trading investments:
|
|
|
|
|
|
|||
Investments related to deferred compensation plans
|
184.4
|
|
|
221.3
|
|
|
147.5
|
|
Available-for-sale investments:
|
|
|
|
|
|
|||
Seed money in affiliated funds
|
63.5
|
|
|
76.2
|
|
|
50.8
|
|
Equity method investments
|
193.1
|
|
|
231.7
|
|
|
154.5
|
|
Other
|
8.2
|
|
|
9.8
|
|
|
6.6
|
|
Total market risk on investments
|
449.2
|
|
|
539.0
|
|
|
359.4
|
|
$ in millions
|
Carrying Value
|
|
Fair Value assuming 20% increase
|
|
Fair Value assuming 20% decrease
|
|||
December 31, 2010
|
|
|
|
|
|
|||
Trading investments:
|
|
|
|
|
|
|||
Investments related to deferred compensation plans
|
165.5
|
|
|
198.6
|
|
|
132.4
|
|
Available-for-sale investments:
|
|
|
|
|
|
|||
Seed money in affiliated funds
|
99.5
|
|
|
119.4
|
|
|
79.6
|
|
Equity method investments
|
156.9
|
|
|
188.3
|
|
|
125.5
|
|
Other
|
7.5
|
|
|
9.0
|
|
|
6.0
|
|
Total market risk on investments
|
429.4
|
|
|
515.3
|
|
|
343.5
|
|
$ in millions
|
Carrying Value
|
|
Fair Value assuming a +1% interest rate change
|
|
Fair Value assuming a -1% interest rate change
|
|||
December 31, 2011
|
|
|
|
|
|
|||
Available-for-sale investments:
|
|
|
|
|
|
|||
Foreign time deposits
|
32.2
|
|
|
32.3
|
|
|
32.2
|
|
Total investments
|
32.2
|
|
|
32.3
|
|
|
32.2
|
|
December 31, 2010
|
|
|
|
|
|
|||
Available-for-sale investments:
|
|
|
|
|
|
|||
Collateralized loan obligations
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
Foreign time deposits
|
28.2
|
|
|
28.3
|
|
|
28.2
|
|
Total investments
|
28.7
|
|
|
28.8
|
|
|
28.7
|
|
$ in millions
|
Total
|
|
Floating Rate
|
|
Fixed Rate
|
|
Weighted Average Interest Rate (%)
|
|
Weighted Average Period for Which Rate is Fixed (Years)
|
|||||
2011
|
|
|
|
|
|
|
|
|
|
|||||
Currency:
|
|
|
|
|
|
|
|
|
|
|||||
U.S. dollar
|
1,284.7
|
|
|
539.0
|
|
|
745.7
|
|
|
3.8
|
%
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2010
|
|
|
|
|
|
|
|
|
|
|||||
Currency:
|
|
|
|
|
|
|
|
|
|
|||||
U.S. dollar
|
1,315.7
|
|
|
570.0
|
|
|
745.7
|
|
|
4.3
|
%
|
|
2.4
|
|
|
|
$ in millions, except per share data
|
Q411
|
|
Q311
|
|
Q211
|
|
Q111
|
|
Q410
|
|
Q310
|
|
Q210
|
|
Q110
|
||||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
|
$747.6
|
|
|
|
$779.5
|
|
|
|
$819.1
|
|
|
|
$792.3
|
|
|
|
$773.7
|
|
|
|
$725.8
|
|
|
|
$627.9
|
|
|
|
$593.5
|
|
Service and distribution fees
|
181.1
|
|
|
189.1
|
|
|
211.4
|
|
|
198.7
|
|
|
202.0
|
|
|
191.6
|
|
|
139.4
|
|
|
112.5
|
|
||||||||
Performance fees
|
23.9
|
|
|
2.6
|
|
|
7.6
|
|
|
3.8
|
|
|
18.7
|
|
|
2.5
|
|
|
3.5
|
|
|
1.4
|
|
||||||||
Other
|
44.5
|
|
|
26.6
|
|
|
31.9
|
|
|
32.5
|
|
|
34.1
|
|
|
33.2
|
|
|
16.2
|
|
|
11.7
|
|
||||||||
Total operating revenues
|
997.1
|
|
|
997.8
|
|
|
1,070.0
|
|
|
1,027.3
|
|
|
1,028.5
|
|
|
953.1
|
|
|
787.0
|
|
|
719.1
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee compensation
|
316.5
|
|
|
305.5
|
|
|
318.3
|
|
|
305.9
|
|
|
312.7
|
|
|
304.1
|
|
|
260.5
|
|
|
237.6
|
|
||||||||
Third-party distribution, service and
advisory
|
301.8
|
|
|
314.4
|
|
|
341.8
|
|
|
324.5
|
|
|
315.6
|
|
|
291.7
|
|
|
238.3
|
|
|
208.2
|
|
||||||||
Marketing
|
21.1
|
|
|
13.1
|
|
|
26.1
|
|
|
25.7
|
|
|
25.6
|
|
|
19.6
|
|
|
17.6
|
|
|
15.7
|
|
||||||||
Property, office and technology
|
66.0
|
|
|
62.7
|
|
|
61.9
|
|
|
64.0
|
|
|
65.6
|
|
|
63.5
|
|
|
55.8
|
|
|
53.5
|
|
||||||||
General and administrative
|
74.6
|
|
|
69.6
|
|
|
77.6
|
|
|
73.6
|
|
|
83.6
|
|
|
64.5
|
|
|
64.1
|
|
|
50.0
|
|
||||||||
Transaction and integration
|
5.5
|
|
|
4.7
|
|
|
11.3
|
|
|
7.9
|
|
|
26.7
|
|
|
26.8
|
|
|
79.3
|
|
|
17.2
|
|
||||||||
Total operating expenses
|
785.5
|
|
|
770.0
|
|
|
837.0
|
|
|
801.6
|
|
|
829.8
|
|
|
770.2
|
|
|
715.6
|
|
|
582.2
|
|
||||||||
Operating Income
|
211.6
|
|
|
227.8
|
|
|
233.0
|
|
|
225.7
|
|
|
198.7
|
|
|
182.9
|
|
|
71.4
|
|
|
136.9
|
|
||||||||
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity in earnings of unconsolidated
affiliates
|
4.9
|
|
|
8.1
|
|
|
10.8
|
|
|
6.7
|
|
|
13.3
|
|
|
10.7
|
|
|
10.4
|
|
|
5.8
|
|
||||||||
Interest income
|
2.7
|
|
|
3.8
|
|
|
2.4
|
|
|
2.1
|
|
|
3.6
|
|
|
3.4
|
|
|
1.8
|
|
|
1.6
|
|
||||||||
Interest income of consolidated
investment products
|
73.6
|
|
|
79.6
|
|
|
79.8
|
|
|
74.2
|
|
|
65.0
|
|
|
70.3
|
|
|
53.1
|
|
|
52.5
|
|
||||||||
Gains/(losses) of consolidated
investment products, net
|
104.4
|
|
|
(93.1
|
)
|
|
(64.7
|
)
|
|
(85.5
|
)
|
|
(28.0
|
)
|
|
(148.3
|
)
|
|
187.2
|
|
|
103.1
|
|
||||||||
Interest expense
|
(14.3
|
)
|
|
(15.3
|
)
|
|
(16.0
|
)
|
|
(16.2
|
)
|
|
(16.0
|
)
|
|
(16.1
|
)
|
|
(14.1
|
)
|
|
(12.4
|
)
|
||||||||
Interest expense of consolidated
investment products
|
(51.8
|
)
|
|
(48.7
|
)
|
|
(46.5
|
)
|
|
(40.0
|
)
|
|
(36.6
|
)
|
|
(35.6
|
)
|
|
(25.6
|
)
|
|
(20.8
|
)
|
||||||||
Other gains and losses, net
|
54.8
|
|
|
(19.7
|
)
|
|
6.0
|
|
|
7.9
|
|
|
12.4
|
|
|
14.6
|
|
|
(9.3
|
)
|
|
(2.1
|
)
|
||||||||
Income before income taxes
|
385.9
|
|
|
142.5
|
|
|
204.8
|
|
|
174.9
|
|
|
212.4
|
|
|
81.9
|
|
|
274.9
|
|
|
264.6
|
|
||||||||
Income tax provision
|
(76.0
|
)
|
|
(59.1
|
)
|
|
(75.4
|
)
|
|
(75.6
|
)
|
|
(55.7
|
)
|
|
(54.5
|
)
|
|
(36.7
|
)
|
|
(50.1
|
)
|
||||||||
Net income
|
309.9
|
|
|
83.4
|
|
|
129.4
|
|
|
99.3
|
|
|
156.7
|
|
|
27.4
|
|
|
238.2
|
|
|
214.5
|
|
||||||||
(Gains)/losses attributable to
noncontrolling interests in
consolidated entities, net
|
(107.6
|
)
|
|
83.5
|
|
|
53.6
|
|
|
78.2
|
|
|
18.5
|
|
|
127.3
|
|
|
(197.4
|
)
|
|
(119.5
|
)
|
||||||||
Net income attributable to common shareholders
|
|
$202.3
|
|
|
|
$166.9
|
|
|
|
$183.0
|
|
|
|
$177.5
|
|
|
|
$175.2
|
|
|
|
$154.7
|
|
|
|
$40.8
|
|
|
|
$95.0
|
|
Earnings per share*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
- basic
|
|
$0.44
|
|
|
|
$0.36
|
|
|
|
$0.39
|
|
|
|
$0.38
|
|
|
|
$0.37
|
|
|
|
$0.32
|
|
|
|
$0.09
|
|
|
|
$0.22
|
|
- diluted
|
|
$0.44
|
|
|
|
$0.36
|
|
|
|
$0.39
|
|
|
|
$0.38
|
|
|
|
$0.37
|
|
|
|
$0.32
|
|
|
|
$0.09
|
|
|
|
$0.21
|
|
Average shares outstanding*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
- basic
|
456.8
|
|
|
459.5
|
|
|
465.5
|
|
|
469.9
|
|
|
470.5
|
|
|
476.6
|
|
|
455.0
|
|
|
439.0
|
|
||||||||
- diluted
|
458.3
|
|
|
461.0
|
|
|
467.4
|
|
|
472.1
|
|
|
473.1
|
|
|
479.1
|
|
|
457.8
|
|
|
442.4
|
|
||||||||
Dividends declared per share:
|
|
$0.1225
|
|
|
|
$0.1225
|
|
|
|
$0.1225
|
|
|
|
$0.1100
|
|
|
|
$0.1100
|
|
|
|
$0.1100
|
|
|
|
$0.1100
|
|
|
|
$0.1025
|
|
*
|
The sum of the quarterly earnings per share amounts may differ from the annual earnings per share amounts due to the required method of computing the weighted average number of shares in interim periods.
|
|
As of
|
||||
$ in millions, except per share data
|
December 31, 2011
|
|
December 31, 2010
|
||
ASSETS
|
|
|
|
||
Current assets:
|
|
|
|
||
Cash and cash equivalents
|
727.4
|
|
|
740.5
|
|
Cash and cash equivalents of consolidated investment products
|
382.3
|
|
|
636.7
|
|
Unsettled fund receivables
|
444.4
|
|
|
513.4
|
|
Accounts receivable
|
424.4
|
|
|
424.7
|
|
Accounts receivable of consolidated investment products
|
98.5
|
|
|
158.8
|
|
Investments
|
283.7
|
|
|
308.8
|
|
Prepaid assets
|
51.2
|
|
|
64.0
|
|
Other current assets
|
150.0
|
|
|
101.8
|
|
Deferred tax asset, net
|
28.7
|
|
|
30.4
|
|
Assets held for policyholders
|
1,243.5
|
|
|
1,295.4
|
|
Total current assets
|
3,834.1
|
|
|
4,274.5
|
|
Non-current assets:
|
|
|
|
||
Investments
|
200.8
|
|
|
164.4
|
|
Investments of consolidated investment products
|
6,629.0
|
|
|
7,206.0
|
|
Security deposit assets and receivables
|
81.2
|
|
|
146.3
|
|
Other non-current assets
|
17.9
|
|
|
20.9
|
|
Deferred sales commissions
|
40.5
|
|
|
42.2
|
|
Property and equipment, net
|
312.8
|
|
|
272.4
|
|
Intangible assets, net
|
1,322.8
|
|
|
1,337.2
|
|
Goodwill
|
6,907.9
|
|
|
6,980.2
|
|
Total non-current assets
|
15,512.9
|
|
|
16,169.6
|
|
Total assets
|
19,347.0
|
|
|
20,444.1
|
|
LIABILITIES AND EQUITY
|
|
|
|
||
Current liabilities:
|
|
|
|
||
Current maturities of total debt
|
215.1
|
|
|
—
|
|
Unsettled fund payables
|
439.6
|
|
|
504.8
|
|
Income taxes payable
|
59.6
|
|
|
72.2
|
|
Other current liabilities
|
841.5
|
|
|
905.7
|
|
Other current liabilities of consolidated investment products
|
175.1
|
|
|
486.4
|
|
Policyholder payables
|
1,243.5
|
|
|
1,295.4
|
|
Total current liabilities
|
2,974.4
|
|
|
3,264.5
|
|
Non-current liabilities:
|
|
|
|
|
|
Long-term debt
|
1,069.6
|
|
|
1,315.7
|
|
Long-term debt of consolidated investment products
|
5,512.9
|
|
|
5,865.4
|
|
Deferred tax liabilities, net
|
274.0
|
|
|
229.0
|
|
Security deposits payable
|
81.2
|
|
|
146.3
|
|
Other non-current liabilities
|
297.3
|
|
|
262.3
|
|
Total non-current liabilities
|
7,235.0
|
|
|
7,818.7
|
|
Total liabilities
|
10,209.4
|
|
|
11,083.2
|
|
Commitments and contingencies (See Note 19)
|
|
|
|
||
Equity:
|
|
|
|
||
Equity attributable to common shareholders:
|
|
|
|
||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of December 31, 2011, and 2010)
|
98.1
|
|
|
98.1
|
|
Additional paid-in-capital
|
6,180.6
|
|
|
6,262.6
|
|
Treasury shares
|
(1,280.4
|
)
|
|
(991.5
|
)
|
Retained earnings
|
2,413.2
|
|
|
1,904.4
|
|
Retained earnings appropriated for investors in consolidated investment products
|
334.3
|
|
|
495.5
|
|
Accumulated other comprehensive income, net of tax
|
373.3
|
|
|
495.5
|
|
Total equity attributable to common shareholders
|
8,119.1
|
|
|
8,264.6
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
1,018.5
|
|
|
1,096.3
|
|
Total equity
|
9,137.6
|
|
|
9,360.9
|
|
Total liabilities and equity
|
19,347.0
|
|
|
20,444.1
|
|
|
Years ended December 31,
|
||||||||||
$ in millions, except per share data
|
2011
|
|
2010
|
|
2009
|
||||||
Operating revenues:
|
|
|
|
|
|
||||||
Investment management fees
|
3,138.5
|
|
|
2,720.9
|
|
|
2,120.2
|
|
|||
Service and distribution fees
|
780.3
|
|
|
645.5
|
|
|
412.6
|
|
|||
Performance fees
|
37.9
|
|
|
26.1
|
|
|
30.0
|
|
|||
Other
|
135.5
|
|
|
95.2
|
|
|
64.5
|
|
|||
Total operating revenues
|
4,092.2
|
|
|
3,487.7
|
|
|
2,627.3
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||
Employee compensation
|
1,246.2
|
|
|
1,114.9
|
|
|
950.8
|
|
|||
Third-party distribution, service and advisory
|
1,282.5
|
|
|
1,053.8
|
|
|
737.0
|
|
|||
Marketing
|
86.0
|
|
|
78.5
|
|
|
65.3
|
|
|||
Property, office and technology
|
254.6
|
|
|
238.4
|
|
|
212.3
|
|
|||
General and administrative
|
295.4
|
|
|
262.2
|
|
|
166.8
|
|
|||
Transaction and integration
|
29.4
|
|
|
150.0
|
|
|
10.8
|
|
|||
Total operating expenses
|
3,194.1
|
|
|
2,897.8
|
|
|
2,143.0
|
|
|||
Operating income
|
898.1
|
|
|
589.9
|
|
|
484.3
|
|
|||
Other income/(expense):
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of unconsolidated affiliates
|
30.5
|
|
|
40.2
|
|
|
27.0
|
|
|||
Interest and dividend income
|
11.0
|
|
|
10.4
|
|
|
9.8
|
|
|||
Interest income of consolidated investment products
|
307.2
|
|
|
240.9
|
|
|
—
|
|
|||
Gains/(losses) of consolidated investment products, net
|
(138.9
|
)
|
|
114.0
|
|
|
(106.9
|
)
|
|||
Interest expense
|
(61.8
|
)
|
|
(58.6
|
)
|
|
(64.5
|
)
|
|||
Interest expense of consolidated investment products
|
(187.0
|
)
|
|
(118.6
|
)
|
|
—
|
|
|||
Other gains and losses, net
|
49.0
|
|
|
15.6
|
|
|
7.8
|
|
|||
Income before income taxes
|
908.1
|
|
|
833.8
|
|
|
357.5
|
|
|||
Income tax provision
|
(286.1
|
)
|
|
(197.0
|
)
|
|
(148.2
|
)
|
|||
Net income
|
622.0
|
|
|
636.8
|
|
|
209.3
|
|
|||
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
107.7
|
|
|
(171.1
|
)
|
|
113.2
|
|
|||
Net income attributable to common shareholders
|
729.7
|
|
|
465.7
|
|
|
322.5
|
|
|||
Earnings per share:
|
|
|
|
|
|
||||||
- basic
|
$
|
1.58
|
|
|
$
|
1.01
|
|
|
$
|
0.77
|
|
- diluted
|
$
|
1.57
|
|
|
$
|
1.01
|
|
|
$
|
0.76
|
|
Dividends declared per share
|
$
|
0.4775
|
|
|
$
|
0.4325
|
|
|
$
|
0.4075
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2011
|
|
2010
|
|
2009
|
|||
Operating activities:
|
|
|
|
|
|
|||
Net income
|
622.0
|
|
|
636.8
|
|
|
209.3
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Amortization and depreciation
|
117.4
|
|
|
96.7
|
|
|
77.6
|
|
Share-based compensation expense
|
115.1
|
|
|
117.8
|
|
|
90.8
|
|
Gains on disposal of property, equipment, and software, net
|
(5.8
|
)
|
|
—
|
|
|
(1.2
|
)
|
Purchase of trading investments
|
(10,548.6
|
)
|
|
(7,093.1
|
)
|
|
(41.9
|
)
|
Proceeds from sale of trading investments
|
10,537.6
|
|
|
7,032.7
|
|
|
13.1
|
|
Other gains and losses, net
|
(49.0
|
)
|
|
(15.6
|
)
|
|
(7.8
|
)
|
Losses/(gains) of consolidated investment products, net
|
138.9
|
|
|
(114.0
|
)
|
|
106.9
|
|
Tax benefit from share-based compensation
|
77.8
|
|
|
63.4
|
|
|
42.3
|
|
Excess tax benefits from share-based compensation
|
(14.7
|
)
|
|
(14.8
|
)
|
|
(9.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
(30.5
|
)
|
|
(40.2
|
)
|
|
(27.0
|
)
|
Dividends from unconsolidated affiliates
|
21.3
|
|
|
26.0
|
|
|
28.3
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Decrease/(increase) in cash held by consolidated investment products
|
264.2
|
|
|
(336.2
|
)
|
|
45.0
|
|
Decrease/(increase) in receivables
|
213.4
|
|
|
(223.3
|
)
|
|
(468.4
|
)
|
(Decrease)/increase in payables
|
(494.3
|
)
|
|
243.0
|
|
|
305.1
|
|
Net cash provided by operating activities
|
964.8
|
|
|
379.2
|
|
|
362.7
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
(107.0
|
)
|
|
(89.6
|
)
|
|
(39.5
|
)
|
Disposal of property and equipment
|
12.6
|
|
|
—
|
|
|
6.8
|
|
Purchase of available-for-sale investments
|
(31.4
|
)
|
|
(33.9
|
)
|
|
(15.6
|
)
|
Proceeds from sale of available-for-sale investments
|
60.2
|
|
|
64.7
|
|
|
18.8
|
|
Purchase of investments by consolidated investment products
|
(2,991.4
|
)
|
|
(2,367.7
|
)
|
|
(44.1
|
)
|
Proceeds from sale of investments by consolidated investment products
|
3,369.8
|
|
|
2,784.8
|
|
|
34.2
|
|
Returns of capital in investments of consolidated investment products
|
109.2
|
|
|
81.5
|
|
|
17.9
|
|
Purchase of other investments
|
(143.4
|
)
|
|
(69.4
|
)
|
|
(88.5
|
)
|
Proceeds from sale of other investments
|
64.6
|
|
|
42.4
|
|
|
31.8
|
|
Returns of capital and distributions from equity method investments
|
36.6
|
|
|
25.3
|
|
|
10.0
|
|
Acquisitions of businesses
|
(14.9
|
)
|
|
(749.6
|
)
|
|
—
|
|
Acquisition earn-out payments
|
(16.8
|
)
|
|
(26.3
|
)
|
|
(34.2
|
)
|
Net cash provided by/(used in) investing activities
|
348.1
|
|
|
(337.8
|
)
|
|
(102.4
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
|
Issuance of new shares
|
—
|
|
|
—
|
|
|
441.8
|
|
Proceeds from exercises of share options
|
12.4
|
|
|
19.6
|
|
|
80.0
|
|
Purchases of treasury shares
|
(436.5
|
)
|
|
(192.2
|
)
|
|
—
|
|
Dividends paid
|
(220.9
|
)
|
|
(197.9
|
)
|
|
(168.9
|
)
|
Excess tax benefits from share-based compensation
|
14.7
|
|
|
14.8
|
|
|
9.4
|
|
Capital invested into consolidated investment products
|
37.2
|
|
|
24.3
|
|
|
7.2
|
|
Capital distributed by consolidated investment products
|
(172.4
|
)
|
|
(97.2
|
)
|
|
(52.1
|
)
|
Repayments of debt of consolidated investment products
|
(513.3
|
)
|
|
(207.3
|
)
|
|
—
|
|
Net (repayments)/borrowings under credit facility
|
(31.0
|
)
|
|
570.0
|
|
|
(12.0
|
)
|
Repayments of senior notes
|
—
|
|
|
—
|
|
|
(397.2
|
)
|
Acquisition of remaining noncontrolling interest in subsidiary
|
—
|
|
|
—
|
|
|
(8.9
|
)
|
Acquisition of interest in consolidated investment products
|
(12.3
|
)
|
|
—
|
|
|
—
|
|
Net cash used by financing activities
|
(1,322.1
|
)
|
|
(65.9
|
)
|
|
(100.7
|
)
|
(Decrease)/increase in cash and cash equivalents
|
(9.2
|
)
|
|
(24.5
|
)
|
|
159.6
|
|
Foreign exchange movement on cash and cash equivalents
|
(3.9
|
)
|
|
3.0
|
|
|
17.2
|
|
Cash and cash equivalents, beginning of year
|
740.5
|
|
|
762.0
|
|
|
585.2
|
|
Cash and cash equivalents, end of year
|
727.4
|
|
|
740.5
|
|
|
762.0
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
|
|
Interest paid
|
(53.5
|
)
|
|
(50.6
|
)
|
|
(60.4
|
)
|
Interest received
|
14.5
|
|
|
7.7
|
|
|
10.5
|
|
Taxes paid
|
(199.8
|
)
|
|
(172.3
|
)
|
|
(88.4
|
)
|
|
Equity Attributable to Common Shareholders
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in Consolidated Investment Products
|
|
Accumulated Other Comprehensive Income, net of tax
|
|
Total Equity Attributable to Common Shareholders
|
|
Equity Attributable to Noncontrolling Interests in Consolidated Entities
|
|
Total Equity
|
|||||||||
January 1, 2011
|
98.1
|
|
|
6,262.6
|
|
|
(991.5
|
)
|
|
1,904.4
|
|
|
495.5
|
|
|
495.5
|
|
|
8,264.6
|
|
|
1,096.3
|
|
|
9,360.9
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
729.7
|
|
|
—
|
|
|
—
|
|
|
729.7
|
|
|
(107.7
|
)
|
|
622.0
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Currency translation differences on investments in overseas subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71.9
|
)
|
|
(71.9
|
)
|
|
23.1
|
|
|
(48.8
|
)
|
Change in accumulated OCI related to employee benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42.4
|
)
|
|
(42.4
|
)
|
|
—
|
|
|
(42.4
|
)
|
Change in accumulated OCI of equity method investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
|
(7.2
|
)
|
|
—
|
|
|
(7.2
|
)
|
Change in net unrealized gains/losses on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.3
|
)
|
|
(12.3
|
)
|
|
—
|
|
|
(12.3
|
)
|
Tax impacts of changes in accumulated other comprehensive income balances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.6
|
|
|
11.6
|
|
|
—
|
|
|
11.6
|
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
607.5
|
|
|
(84.6
|
)
|
|
522.9
|
|
||||||
Net loss reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(169.9
|
)
|
|
—
|
|
|
(169.9
|
)
|
|
169.9
|
|
|
—
|
|
Currency translation differences on investments in overseas subsidiaries reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.7
|
|
|
—
|
|
|
8.7
|
|
|
(8.7
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154.4
|
)
|
|
(154.4
|
)
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(220.9
|
)
|
|
—
|
|
|
—
|
|
|
(220.9
|
)
|
|
—
|
|
|
(220.9
|
)
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
115.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115.1
|
|
|
—
|
|
|
115.1
|
|
Vested shares
|
—
|
|
|
(202.7
|
)
|
|
202.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(9.1
|
)
|
|
21.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
|
12.4
|
|
Tax impact of share-based payment
|
—
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|
14.7
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(513.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(513.1
|
)
|
|
—
|
|
|
(513.1
|
)
|
December 31, 2011
|
98.1
|
|
|
6,180.6
|
|
|
(1,280.4
|
)
|
|
2,413.2
|
|
|
334.3
|
|
|
373.3
|
|
|
8,119.1
|
|
|
1,018.5
|
|
|
9,137.6
|
|
|
Equity Attributable to Common Shareholders
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Common Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in Consolidated Investment Products
|
|
Accumulated Other Comprehensive Income, net of tax
|
|
Total Equity Attributable to Common Shareholders
|
|
Equity Attributable to Noncontrolling Interests in Consolidated Entities
|
|
Total Equity
|
|||||||||
January 1, 2010
|
91.9
|
|
|
5,688.4
|
|
|
(892.4
|
)
|
|
1,631.4
|
|
|
—
|
|
|
393.6
|
|
|
6,912.9
|
|
|
707.9
|
|
|
7,620.8
|
|
Adoption of guidance now encompassed in ASC Topic 810
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|
274.3
|
|
|
(5.2
|
)
|
|
274.3
|
|
|
—
|
|
|
274.3
|
|
January 1, 2010, as adjusted
|
91.9
|
|
|
5,688.4
|
|
|
(892.4
|
)
|
|
1,636.6
|
|
|
274.3
|
|
|
388.4
|
|
|
7,187.2
|
|
|
707.9
|
|
|
7,895.1
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
465.7
|
|
|
—
|
|
|
—
|
|
|
465.7
|
|
|
171.1
|
|
|
636.8
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences on investments in overseas subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82.6
|
|
|
82.6
|
|
|
(5.3
|
)
|
|
77.3
|
|
Change in accumulated OCI related to employee benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.7
|
|
|
18.7
|
|
|
—
|
|
|
18.7
|
|
Change in accumulated OCI of equity method investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
Change in net unrealized gains/losses on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|
9.9
|
|
|
—
|
|
|
9.9
|
|
Tax impacts of changes in accumulated other comprehensive income balances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
(7.0
|
)
|
|
—
|
|
|
(7.0
|
)
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
572.8
|
|
|
165.8
|
|
|
738.6
|
|
Net income reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.1
|
|
|
—
|
|
|
77.1
|
|
|
(77.1
|
)
|
|
—
|
|
Currency translation differences on investments in overseas subsidiaries reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.3
|
)
|
|
—
|
|
|
(5.3
|
)
|
|
5.3
|
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(69.2
|
)
|
|
(69.2
|
)
|
Business Combinations
|
6.2
|
|
|
563.0
|
|
|
—
|
|
|
—
|
|
|
149.4
|
|
|
—
|
|
|
718.6
|
|
|
363.6
|
|
|
1,082.2
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(197.9
|
)
|
|
—
|
|
|
—
|
|
|
(197.9
|
)
|
|
—
|
|
|
(197.9
|
)
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
117.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117.8
|
|
|
—
|
|
|
117.8
|
|
Vested shares
|
—
|
|
|
(94.5
|
)
|
|
94.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(26.9
|
)
|
|
46.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.6
|
|
|
—
|
|
|
19.6
|
|
Tax impact of share-based payment
|
—
|
|
|
14.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
|
—
|
|
|
14.8
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(240.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(240.1
|
)
|
|
—
|
|
|
(240.1
|
)
|
December 31, 2010
|
98.1
|
|
|
6,262.6
|
|
|
(991.5
|
)
|
|
1,904.4
|
|
|
495.5
|
|
|
495.5
|
|
|
8,264.6
|
|
|
1,096.3
|
|
|
9,360.9
|
|
|
Equity Attributable to Common Shareholders
|
|
|
|
|
||||||||||||||||||
$ in millions
|
Common Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss), net of tax
|
|
Total Equity Attributable to Common Shareholders
|
|
Equity Attributable to Noncontrolling Interests in Consolidated Entities
|
|
Total Equity
|
||||||||
January 1, 2009
|
85.3
|
|
|
5,352.6
|
|
|
(1,128.9
|
)
|
|
1,476.3
|
|
|
(95.8
|
)
|
|
5,689.5
|
|
|
906.7
|
|
|
6,596.2
|
|
Net income/(loss), including gains and losses attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
322.5
|
|
|
—
|
|
|
322.5
|
|
|
(113.2
|
)
|
|
209.3
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences on investments in overseas subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
488.3
|
|
|
488.3
|
|
|
—
|
|
|
488.3
|
|
Change in accumulated OCI related to employee benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.1
|
)
|
|
(15.1
|
)
|
|
—
|
|
|
(15.1
|
)
|
Change in net unrealized gains/losses on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
|
14.6
|
|
|
—
|
|
|
14.6
|
|
Adoption of guidance now encompassed in ASC Topic 320
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
Tax impacts of changes in accumulated other comprehensive income balances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
3.1
|
|
|
—
|
|
|
3.1
|
|
Total comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
811.9
|
|
|
(113.2
|
)
|
|
698.7
|
|
Adoption of guidance now encompassed in ASC Topic 320
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(84.2
|
)
|
|
(84.2
|
)
|
Issuance of new shares
|
6.6
|
|
|
435.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
441.8
|
|
|
—
|
|
|
441.8
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(168.9
|
)
|
|
—
|
|
|
(168.9
|
)
|
|
—
|
|
|
(168.9
|
)
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation
|
—
|
|
|
90.8
|
|
|
|
|
|
—
|
|
|
—
|
|
|
90.8
|
|
|
—
|
|
|
90.8
|
|
Vested shares
|
—
|
|
|
(127.6
|
)
|
|
127.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(51.5
|
)
|
|
131.8
|
|
|
—
|
|
|
—
|
|
|
80.3
|
|
|
—
|
|
|
80.3
|
|
Tax impact of share-based payment
|
—
|
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
Modification of share-based payment awards
|
—
|
|
|
(13.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.0
|
)
|
|
—
|
|
|
(13.0
|
)
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(22.9
|
)
|
|
—
|
|
|
—
|
|
|
(22.9
|
)
|
|
—
|
|
|
(22.9
|
)
|
Acquisition of remaining noncontrolling interest in subsidiary
|
—
|
|
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
|
(1.4
|
)
|
|
(8.9
|
)
|
December 31, 2009
|
91.9
|
|
|
5,688.4
|
|
|
(892.4
|
)
|
|
1,631.4
|
|
|
393.6
|
|
|
6,912.9
|
|
|
707.9
|
|
|
7,620.8
|
|
|
For the year ended December 31,
|
||||
$ in millions
|
2010
|
|
2009
|
||
Third-party distribution, service and advisory expenses, as previously reported
|
972.7
|
|
|
693.4
|
|
Reclassification
|
81.1
|
|
|
43.6
|
|
Third-party distribution, service and advisory expenses, as reclassified
|
1,053.8
|
|
|
737.0
|
|
Marketing expenses, as previously reported
|
159.6
|
|
|
108.9
|
|
Reclassification
|
(81.1
|
)
|
|
(43.6
|
)
|
Marketing expenses, as reclassified
|
78.5
|
|
|
65.3
|
|
|
For the year ended December 31,
|
||||
$ in millions
|
2011
|
|
2010
|
||
Acquisition-related charges
|
—
|
|
|
5.7
|
|
Integration-related charges:
|
|
|
|
||
Staff costs
|
2.8
|
|
|
39.1
|
|
Technology, contractor and related costs
|
11.0
|
|
|
53.4
|
|
Professional services
|
15.6
|
|
|
51.8
|
|
Total integration-related charges
|
29.4
|
|
|
144.3
|
|
Total transaction and integration charges
|
29.4
|
|
|
150.0
|
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
|
|
727.4
|
|
|
727.4
|
|
|
740.5
|
|
|
740.5
|
|
Available for sale investments
|
4
|
|
63.5
|
|
|
63.5
|
|
|
100.0
|
|
|
100.0
|
|
Assets held for policyholders
|
|
|
1,243.5
|
|
|
1,243.5
|
|
|
1,295.4
|
|
|
1,295.4
|
|
Trading investments
|
4
|
|
187.5
|
|
|
187.5
|
|
|
180.6
|
|
|
180.6
|
|
Foreign time deposits*
|
4
|
|
32.2
|
|
|
32.2
|
|
|
28.2
|
|
|
28.2
|
|
Support agreements*
|
19,20
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(2.0
|
)
|
|
(2.0
|
)
|
Policyholder payables
|
|
|
(1,243.5
|
)
|
|
(1,243.5
|
)
|
|
(1,295.4
|
)
|
|
(1,295.4
|
)
|
Financial instruments sold, not yet purchased
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(0.7
|
)
|
|
(0.7
|
)
|
Derivative liabilities
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Note Payable
|
|
|
(16.8
|
)
|
|
(16.8
|
)
|
|
(18.9
|
)
|
|
(18.9
|
)
|
Total debt*
|
9
|
|
(1,284.7
|
)
|
|
(1,307.5
|
)
|
|
(1,315.7
|
)
|
|
(1,339.3
|
)
|
*
|
These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value.
|
•
|
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
•
|
Investments related to deferred compensation plans
|
•
|
Unit Investment Trust ("UIT")-related equity and debt securities
|
•
|
Corporate stock
|
•
|
UITs
|
•
|
Municipal securities
|
|
As of December 31, 2011
|
||||||||||
$ 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)
|
||||
Current assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
257.7
|
|
|
257.7
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
63.5
|
|
|
63.5
|
|
|
—
|
|
|
—
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
184.4
|
|
|
184.4
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate stock
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
UITs
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
Assets held for policyholders
|
1,243.5
|
|
|
1,243.5
|
|
|
—
|
|
|
—
|
|
Total assets at fair value
|
1,752.2
|
|
|
1,751.1
|
|
|
1.1
|
|
|
—
|
|
Current liabilities:
|
|
|
|
|
|
|
|
||||
Policyholder payables
|
(1,243.5
|
)
|
|
(1,243.5
|
)
|
|
—
|
|
|
—
|
|
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(1.0
|
)
|
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
Note payable
|
(16.8
|
)
|
|
—
|
|
|
—
|
|
|
(16.8
|
)
|
Total liabilities at fair value
|
(1,261.3
|
)
|
|
(1,244.5
|
)
|
|
—
|
|
|
(16.8
|
)
|
*
|
Current foreign time deposits of
$32.2 million
and other current investments of
$0.5 million
are excluded from this table. Other non-current equity and cost method investments of
$193.1 million
and
$7.7 million
, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
As of December 31, 2010
|
||||||||||
$ 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)
|
||||
Current assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
316.4
|
|
|
316.4
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
Seed money
|
99.5
|
|
|
99.5
|
|
|
—
|
|
|
—
|
|
Trading investments:
|
|
|
|
|
|
|
|
|
|
|
|
Investments related to deferred compensation plans
|
165.5
|
|
|
165.5
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate stock
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
UITs
|
4.0
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
9.9
|
|
|
—
|
|
|
9.9
|
|
|
—
|
|
Assets held for policyholders
|
1,295.4
|
|
|
1,295.4
|
|
|
—
|
|
|
—
|
|
Total current assets
|
1,891.9
|
|
|
1,882.0
|
|
|
9.9
|
|
|
—
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Investments - available-for-sale*:
|
|
|
|
|
|
|
|
|
|
|
|
CLOs
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Total assets at fair value
|
1,892.4
|
|
|
1,882.0
|
|
|
9.9
|
|
|
0.5
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Policyholder payables
|
(1,295.4
|
)
|
|
(1,295.4
|
)
|
|
—
|
|
|
—
|
|
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate equities
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
UIT-related derivative liabilities
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Note payable
|
(18.9
|
)
|
|
—
|
|
|
—
|
|
|
(18.9
|
)
|
Total liabilities at fair value
|
(1,315.1
|
)
|
|
(1,296.2
|
)
|
|
—
|
|
|
(18.9
|
)
|
*
|
Current foreign time deposits of
$28.2 million
and other current investments of
$0.5 million
are excluded from this table. Other non-current equity and cost method investments of
$156.9 million
and
$7.0 million
, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
For the year ended December 31, 2011
|
|
For the year ended December 31, 2010
|
|||||
$ in millions
|
CLO Investment
|
|
Note Payable
|
|
CLO Investment
|
|||
Beginning balance
|
0.5
|
|
|
(18.9
|
)
|
|
17.9
|
|
Adoption of guidance now encompassed in ASC Topic 810*
|
—
|
|
|
—
|
|
|
(17.4
|
)
|
Beginning balance, as adjusted
|
0.5
|
|
|
(18.9
|
)
|
|
0.5
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)**
|
—
|
|
|
—
|
|
|
0.1
|
|
Foreign exchange movements included in other expenses
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
Purchases, sales, issuances, and settlements, net***
|
(0.5
|
)
|
|
2.9
|
|
|
(0.1
|
)
|
Ending balance
|
—
|
|
|
(16.8
|
)
|
|
0.5
|
|
*
|
The company adopted guidance now encompassed in ASC Topic 810 on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of
$50.4 million
at
December 31, 2011
(before consolidation). The adjustment of
$17.4 million
in the table above reflects the elimination of the company's equity interest upon adoption. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.
|
**
|
There were
no
net unrealized gains and losses included in accumulated other comprehensive income/(loss) for the year ended
December 31, 2011
as assets was sold in the year ended
December 31, 2011
(year ended December 31, 2010:
$0.1 million
attributed to the change in unrealized gains and losses related to assets still held at December 31, 2010).
|
***
|
Prior to the adoption of guidance included in ASU 2010-06, discussed in Note 1, “Accounting Policies,” purchases, sales, issuances, and settlements were presented net. For the year ended
December 31, 2011
there was
$0.1 million
of return of capital and a sale of
$0.4 million
related to the CLO investment (year ended December 31, 2010:
$0.1 million
return of capital activity). For the year ended
December 31, 2011
, there was
$2.9 million
in settlement activity related to the note payable.
|
|
As of
|
||||
|
December 31,
|
|
December 31,
|
||
$ in millions
|
2011
|
|
2010
|
||
Available-for-sale investments:
|
|
|
|
||
Seed money
|
63.5
|
|
|
99.5
|
|
Trading investments:
|
|
|
|
||
Investments related to deferred compensation plans
|
184.4
|
|
|
165.5
|
|
UIT-related equity and debt securities
|
3.1
|
|
|
15.1
|
|
Foreign time deposits
|
32.2
|
|
|
28.2
|
|
Other
|
0.5
|
|
|
0.5
|
|
Total current investments
|
283.7
|
|
|
308.8
|
|
|
As of
|
||||
|
December 31,
|
|
December 31,
|
||
$ in millions
|
2011
|
|
2010
|
||
Available-for-sale investments:
|
|
|
|
||
CLOs
|
—
|
|
|
0.5
|
|
Equity method investments
|
193.1
|
|
|
156.9
|
|
Other
|
7.7
|
|
|
7.0
|
|
Total non-current investments
|
200.8
|
|
|
164.4
|
|
|
2011
|
|
2010
|
|
2009
|
|||||||||||||||||||||
$ in millions
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|||||||||
Current available-for-sale investments
|
59.3
|
|
|
8.8
|
|
|
(1.2
|
)
|
|
64.5
|
|
|
9.9
|
|
|
(1.3
|
)
|
|
47.5
|
|
|
4.5
|
|
|
(1.6
|
)
|
Non-current available-for-sale investments
|
0.9
|
|
|
0.6
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
1.4
|
|
|
—
|
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||||||||||||
$ in millions
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
||||||||
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Seed money
|
65.7
|
|
|
2.2
|
|
|
(4.4
|
)
|
|
63.5
|
|
|
89.6
|
|
|
10.6
|
|
|
(0.7
|
)
|
|
99.5
|
|
Current available-for-sale investments
|
65.7
|
|
|
2.2
|
|
|
(4.4
|
)
|
|
63.5
|
|
|
89.6
|
|
|
10.6
|
|
|
(0.7
|
)
|
|
99.5
|
|
Non-current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CLOs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
Non-current available-for-sale investments:
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
|
65.7
|
|
|
2.2
|
|
|
(4.4
|
)
|
|
63.5
|
|
|
89.9
|
|
|
10.8
|
|
|
(0.7
|
)
|
|
100.0
|
|
In millions
|
Year ended December 31, 2011
|
|
Year ended December 31, 2010
|
||
Beginning balance
|
0.8
|
|
|
18.8
|
|
Adoption of guidance now encompassed in ASC Topic 810*
|
—
|
|
|
(18.0
|
)
|
Beginning balance, as adjusted
|
0.8
|
|
|
0.8
|
|
Additional credit losses recognized during the period related to securities for which:
|
|
|
|
||
No OTTI has been previously recognized
|
—
|
|
|
—
|
|
OTTI has been previously recognized
|
—
|
|
|
—
|
|
Ending balance
|
0.8
|
|
|
0.8
|
|
*
|
The company adopted guidance now encompassed in ASC Topic 810 on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of
$50.4 million
at
December 31, 2011
(before consolidation). Of the
$18.8 million
cumulative credit-related OTTI balance at January 1, 2010,
$18.0 million
relates to CLOs that were consolidated into the company's Consolidated Balance Sheet, resulting in the elimination of our equity interest.
|
Name of Company
|
Country of Incorporation
|
|
% Voting Interest Owned
|
|
India Asset Recovery Management Limited
|
India
|
|
80.1
|
%
|
VV Immobilien Verwaltungs und Beteiligungs GmbH
|
Germany
|
|
70.0
|
%
|
VV Immobilien Verwaltungs GmbH
|
Germany
|
|
70.0
|
%
|
HVH Immobilien und Beteiligungs GmbH
|
Germany
|
|
70.0
|
%
|
Name of Company
|
Country of Incorporation
|
|
% Voting Interest Owned
|
|
Invesco Great Wall Fund Management Company Limited
|
China
|
|
49.0
|
%
|
Huaneng Invesco WLR Investment Consulting Company Limited
|
China
|
|
50.0
|
%
|
Pocztylion - ARKA
|
Poland
|
|
29.3
|
%
|
$ in millions
|
Technology and Other Equipment
|
|
Software
|
|
Land and Buildings*
|
|
Work In Process
|
|
Leasehold Improvements
|
|
Total
|
||||||
Cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2011
|
318.4
|
|
|
266.1
|
|
|
72.1
|
|
|
19.6
|
|
|
159.2
|
|
|
835.4
|
|
Foreign exchange
|
(2.2
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
(0.5
|
)
|
|
(0.8
|
)
|
|
(4.8
|
)
|
Additions
|
14.3
|
|
|
3.8
|
|
|
1.2
|
|
|
73.7
|
|
|
17.0
|
|
|
110.0
|
|
Transfers
|
15.8
|
|
|
22.3
|
|
|
—
|
|
|
(48.6
|
)
|
|
10.5
|
|
|
—
|
|
Disposals
|
(79.1
|
)
|
|
(7.6
|
)
|
|
(6.9
|
)
|
|
—
|
|
|
(9.3
|
)
|
|
(102.9
|
)
|
December 31, 2011
|
267.2
|
|
|
284.0
|
|
|
65.7
|
|
|
44.2
|
|
|
176.6
|
|
|
837.7
|
|
Accumulated depreciation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2011
|
(261.7
|
)
|
|
(184.0
|
)
|
|
(8.4
|
)
|
|
—
|
|
|
(108.9
|
)
|
|
(563.0
|
)
|
Foreign exchange
|
1.4
|
|
|
0.7
|
|
|
0.1
|
|
|
—
|
|
|
0.8
|
|
|
3.0
|
|
Depreciation expense
|
(20.1
|
)
|
|
(27.9
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
(11.0
|
)
|
|
(60.3
|
)
|
Disposals
|
77.7
|
|
|
8.0
|
|
|
0.5
|
|
|
—
|
|
|
9.2
|
|
|
95.4
|
|
December 31, 2011
|
(202.7
|
)
|
|
(203.2
|
)
|
|
(9.1
|
)
|
|
—
|
|
|
(109.9
|
)
|
|
(524.9
|
)
|
Net book value:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2011
|
64.5
|
|
|
80.8
|
|
|
56.6
|
|
|
44.2
|
|
|
66.7
|
|
|
312.8
|
|
Cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2010
|
282.5
|
|
|
231.3
|
|
|
72.5
|
|
|
11.5
|
|
|
141.3
|
|
|
739.1
|
|
Foreign exchange
|
1.7
|
|
|
(1.1
|
)
|
|
(1.4
|
)
|
|
(0.1
|
)
|
|
1.3
|
|
|
0.4
|
|
Additions**
|
10.0
|
|
|
7.4
|
|
|
1.0
|
|
|
78.2
|
|
|
3.5
|
|
|
100.1
|
|
Transfers
|
28.3
|
|
|
28.6
|
|
|
—
|
|
|
(70.0
|
)
|
|
13.1
|
|
|
—
|
|
Disposals
|
(4.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
December 31, 2010
|
318.4
|
|
|
266.1
|
|
|
72.1
|
|
|
19.6
|
|
|
159.2
|
|
|
835.4
|
|
Accumulated depreciation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2010
|
(245.5
|
)
|
|
(165.3
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
(100.1
|
)
|
|
(518.4
|
)
|
Foreign exchange
|
(2.1
|
)
|
|
0.8
|
|
|
0.3
|
|
|
—
|
|
|
(1.4
|
)
|
|
(2.4
|
)
|
Depreciation expense
|
(18.2
|
)
|
|
(19.6
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(7.4
|
)
|
|
(46.4
|
)
|
Disposals
|
4.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
December 31, 2010
|
(261.7
|
)
|
|
(184.0
|
)
|
|
(8.4
|
)
|
|
—
|
|
|
(108.9
|
)
|
|
(563.0
|
)
|
Net book value:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2010
|
56.7
|
|
|
82.1
|
|
|
63.7
|
|
|
19.6
|
|
|
50.3
|
|
|
272.4
|
|
*
|
Included within land and buildings are
$33.6 million
at
December 31, 2011
(2010:
$33.2 million
) in non-depreciable land assets.
|
**
|
Included within additions is
$5.4 million
at
December 31, 2010
related to the acquired businesses.
|
$ in millions
|
Gross Book Value
|
|
Accumulated Amortization
|
|
Net Book Value
|
|
Weighted Average Amortization Period (years)
|
||||
December 31, 2011
|
|
|
|
|
|
|
|
||||
Management contracts - indefinite-lived
|
1,206.4
|
|
|
N/A
|
|
|
1,206.4
|
|
|
N/A
|
|
Management contracts - finite-lived
|
185.0
|
|
|
(117.0
|
)
|
|
68.0
|
|
|
8.7
|
|
Customer relationships
|
40.0
|
|
|
(5.3
|
)
|
|
34.7
|
|
|
12.0
|
|
Distribution agreements
|
17.0
|
|
|
(6.7
|
)
|
|
10.3
|
|
|
4.0
|
|
Trademarks / Trade names
|
13.3
|
|
|
(10.3
|
)
|
|
3.0
|
|
|
2.0
|
|
Other
|
0.8
|
|
|
(0.4
|
)
|
|
0.4
|
|
|
10.0
|
|
Total
|
1,462.5
|
|
|
(139.7
|
)
|
|
1,322.8
|
|
|
8.5
|
|
December 31, 2010
|
|
|
|
|
|
|
|
||||
Management contracts - indefinite-lived
|
1,161.7
|
|
|
N/A
|
|
|
1,161.7
|
|
|
N/A
|
|
Management contracts - finite-lived
|
199.7
|
|
|
(87.0
|
)
|
|
112.7
|
|
|
9.0
|
|
Customer relationships
|
40.0
|
|
|
(1.9
|
)
|
|
38.1
|
|
|
12.0
|
|
Distribution agreements
|
17.0
|
|
|
(2.5
|
)
|
|
14.5
|
|
|
4.0
|
|
Trademarks / Trade names
|
13.0
|
|
|
(3.8
|
)
|
|
9.2
|
|
|
2.0
|
|
Other
|
3.6
|
|
|
(2.6
|
)
|
|
1.0
|
|
|
6.1
|
|
Total
|
1,435.0
|
|
|
(97.8
|
)
|
|
1,337.2
|
|
|
8.8
|
|
$ in millions
|
Gross Book Value
|
|
Accumulated Impairment
|
|
Net Book Value
|
|||
January 1, 2011
|
6,996.8
|
|
|
(16.6
|
)
|
|
6,980.2
|
|
Business combinations
|
30.5
|
|
|
—
|
|
|
30.5
|
|
Foreign exchange and other
|
(102.8
|
)
|
|
—
|
|
|
(102.8
|
)
|
December 31, 2011
|
6,924.5
|
|
|
(16.6
|
)
|
|
6,907.9
|
|
|
|
|
|
|
|
|||
January 1, 2010
|
6,484.2
|
|
|
(16.6
|
)
|
|
6,467.6
|
|
Business combinations
|
440.0
|
|
|
—
|
|
|
440.0
|
|
Foreign exchange and other
|
72.6
|
|
|
—
|
|
|
72.6
|
|
December 31, 2010
|
6,996.8
|
|
|
(16.6
|
)
|
|
6,980.2
|
|
$ in millions
|
2011
|
|
2010
|
||
Accruals and other liabilities
|
168.6
|
|
|
182.5
|
|
Compensation and benefits
|
64.3
|
|
|
55.4
|
|
Accrued bonus and deferred compensation
|
336.0
|
|
|
365.3
|
|
Accounts payable
|
272.6
|
|
|
302.5
|
|
Other current liabilities
|
841.5
|
|
|
905.7
|
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||
$ in millions
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
5.625% - due April 17, 2012
|
215.1
|
|
|
217.3
|
|
|
215.1
|
|
|
223.7
|
|
5.375% - due February 27, 2013
|
333.5
|
|
|
343.8
|
|
|
333.5
|
|
|
335.2
|
|
5.375% - due December 15, 2014
|
197.1
|
|
|
207.4
|
|
|
197.1
|
|
|
210.4
|
|
Floating rate credit facility expiring June 3, 2016
|
539.0
|
|
|
539.0
|
|
|
570.0
|
|
|
570.0
|
|
Total debt
|
1,284.7
|
|
|
1,307.5
|
|
|
1,315.7
|
|
|
1,339.3
|
|
Less: current maturities of total debt
|
(215.1
|
)
|
|
(217.3
|
)
|
|
—
|
|
|
—
|
|
Long-term debt
|
1,069.6
|
|
|
1,090.2
|
|
|
1,315.7
|
|
|
1,339.3
|
|
*
|
The company's Senior Note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.
|
In millions
|
Year ended December 31, 2011
|
|
Year ended December 31, 2010
|
|
Year ended December 31, 2009
|
|||
Common shares issued - beginning balance
|
490.4
|
|
|
459.5
|
|
|
426.6
|
|
Issue of new shares
|
—
|
|
|
30.9
|
|
|
32.9
|
|
Common shares issued - ending balance
|
490.4
|
|
|
490.4
|
|
|
459.5
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(44.4
|
)
|
|
(30.3
|
)
|
|
(28.1
|
)
|
Common shares outstanding
|
446.0
|
|
|
460.1
|
|
|
431.4
|
|
In millions
|
Year ended December 31, 2011
|
|
Year ended December 31, 2010
|
|
Year ended December 31, 2009
|
|||
Beginning balance
|
42.7
|
|
|
40.2
|
|
|
50.7
|
|
Acquisition of common shares
|
21.8
|
|
|
11.3
|
|
|
1.6
|
|
Distribution of common shares
|
(9.6
|
)
|
|
(7.0
|
)
|
|
(7.5
|
)
|
Common shares distributed to meet option exercises
|
(0.9
|
)
|
|
(1.8
|
)
|
|
(4.6
|
)
|
Ending balance
|
54.0
|
|
|
42.7
|
|
|
40.2
|
|
$ in millions
|
2011
|
|
2010
|
|
2009
|
|||
Net unrealized gains/(losses) on available-for-sale investments
|
(2.2
|
)
|
|
10.1
|
|
|
5.4
|
|
Tax on unrealized gains/(losses) on available-for-sale investments
|
(0.6
|
)
|
|
(2.4
|
)
|
|
(1.6
|
)
|
Accumulated other comprehensive income/(loss) of equity method investments
|
(4.3
|
)
|
|
2.9
|
|
|
—
|
|
Cumulative foreign currency translation adjustments
|
452.7
|
|
|
524.6
|
|
|
442.0
|
|
Tax on cumulative foreign currency translation adjustments
|
2.5
|
|
|
2.0
|
|
|
2.0
|
|
Employee benefit plan liability adjustments
|
(98.2
|
)
|
|
(55.8
|
)
|
|
(74.5
|
)
|
Tax on employee benefit plan liability adjustments
|
23.4
|
|
|
14.1
|
|
|
20.3
|
|
Total accumulated other comprehensive income/(loss)
|
373.3
|
|
|
495.5
|
|
|
393.6
|
|
$ in millions
|
2011
|
|
2010
|
|
2009
|
|||
Net income
|
622.0
|
|
|
636.8
|
|
|
209.3
|
|
Adoption of guidance now encompassed in ASC Topic 320
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
Unrealized holding gains and losses on available-for-sale investments*
|
(12.2
|
)
|
|
11.5
|
|
|
10.6
|
|
Tax on unrealized holding gains and losses on available-for-sale investments
|
1.7
|
|
|
(2.7
|
)
|
|
(2.8
|
)
|
Comprehensive income of equity method investments
|
(7.2
|
)
|
|
2.9
|
|
|
—
|
|
Reclassification adjustments for net (gains) and losses on available-for-sale investments included in net income
|
(0.1
|
)
|
|
(1.6
|
)
|
|
4.0
|
|
Tax on reclassification adjustments for gains (losses) on available-for-sale investments included in net income
|
0.1
|
|
|
1.9
|
|
|
1.1
|
|
Foreign currency translation adjustments**
|
(48.8
|
)
|
|
77.3
|
|
|
488.3
|
|
Tax on foreign currency translation adjustments
|
0.5
|
|
|
—
|
|
|
0.7
|
|
Adjustments to employee benefit plan liability
|
(42.4
|
)
|
|
18.7
|
|
|
(15.1
|
)
|
Tax on adjustments to employee benefit plan liability
|
9.3
|
|
|
(6.2
|
)
|
|
4.1
|
|
Total other comprehensive income/(loss)
|
522.9
|
|
|
738.6
|
|
|
698.7
|
|
*
|
The company adopted guidance now encompassed in ASC Topic 810 on January 1, 2010, resulting in the consolidation of certain CLOs. Upon adoption, accumulated other comprehensive income was reduced by
$5.2 million
, as accumulated net unrealized gains at January 1, 2010 relating to the company's investments in certain CLOs were reclassified into retained earnings upon their consolidation.
|
**
|
Included in this amount are net
gains
of
$23.1 million
for the year ended
December 31, 2011
related to foreign currency translation adjustments attributable to consolidated investment products (year ended
December 31, 2010
: net
losses
of
$5.3 million
). Of this amount,
$8.7 million
is reclassified from accumulated other comprehensive income into retained earnings appropriated for investors in consolidated investment products (year ended
December 31, 2010
:
$5.3 million
).
|
|
Year ended December 31, 2011
|
|
Year ended December 31, 2010
|
||||||||
|
Time-Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
|
Time-Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
||||
Millions of shares, except fair values
|
|
|
|
|
|
|
|
||||
Unvested at the beginning of period
|
17.4
|
|
|
17.25
|
|
|
11.6
|
|
|
15.24
|
|
Granted during the period
|
5.9
|
|
|
26.34
|
|
|
10.6
|
|
|
19.11
|
|
Forfeited during the period
|
(0.4
|
)
|
|
19.65
|
|
|
(0.3
|
)
|
|
19.36
|
|
Vested and distributed during the period
|
(5.6
|
)
|
|
18.68
|
|
|
(4.5
|
)
|
|
16.04
|
|
Unvested at the end of the period
|
17.3
|
|
|
20.34
|
|
|
17.4
|
|
|
17.25
|
|
|
2011
|
|
2010
|
|
2009
|
|||||||||||||||
Millions of shares, except fair values
|
Time-Vested
|
|
Performance-Vested
|
|
Weighted Average Grant Date Fair Value (£ Sterling)
|
|
Time-Vested
|
|
Performance-Vested
|
|
Time-Vested
|
|
Performance-Vested
|
|||||||
Unvested at the beginning of year
|
3.3
|
|
|
0.1
|
|
|
11.80
|
|
|
5.4
|
|
|
2.0
|
|
|
10.2
|
|
|
6.0
|
|
Granted during the year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Forfeited during the year
|
(0.1
|
)
|
|
—
|
|
|
12.90
|
|
|
(0.1
|
)
|
|
(1.4
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
Modification of share-based payment awards*
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
Vested and distributed during the year
|
(2.6
|
)
|
|
(0.1
|
)
|
|
11.89
|
|
|
(2.0
|
)
|
|
(0.5
|
)
|
|
(4.5
|
)
|
|
(2.3
|
)
|
Unvested at the end of the year
|
0.6
|
|
|
—
|
|
|
11.25
|
|
|
3.3
|
|
|
0.1
|
|
|
5.4
|
|
|
2.0
|
|
*
|
During the year ended
December 31, 2009
, the company modified the terms of
1.4 million
equity-settled share-based payment awards such that the awards became deferred cash awards. As a result of this modification,
$13.0 million
was reclassified out of additional paid in capital and into other current and non-current liabilities on the Consolidated Balance Sheet during the year. There was no impact to the Consolidated Statement of Income or earnings per share as a result of this modification.
|
|
2011
|
|
2010
|
|
2009
|
||||||||||||
Millions of shares, except prices
|
Options
|
|
Weighted Average Exercise Price
(£ Sterling)
|
|
Options
|
|
Weighted Average Exercise Price
(£ Sterling)
|
|
Options
|
|
Weighted Average Exercise Price
(£ Sterling)
|
||||||
Outstanding at the beginning of year
|
10.7
|
|
|
13.85
|
|
|
16.4
|
|
|
14.99
|
|
|
23.1
|
|
|
14.06
|
|
Forfeited during the year
|
(5.3
|
)
|
|
19.70
|
|
|
(3.9
|
)
|
|
21.90
|
|
|
(2.1
|
)
|
|
15.15
|
|
Exercised during the year
|
(0.9
|
)
|
|
8.33
|
|
|
(1.8
|
)
|
|
6.70
|
|
|
(4.6
|
)
|
|
10.20
|
|
Outstanding at the end of the year
|
4.5
|
|
|
7.85
|
|
|
10.7
|
|
|
13.85
|
|
|
16.4
|
|
|
14.99
|
|
Exercisable at the end of the year
|
4.5
|
|
|
7.85
|
|
|
10.7
|
|
|
13.85
|
|
|
16.4
|
|
|
14.99
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Benefit obligation
|
(383.3
|
)
|
|
(336.1
|
)
|
|
(48.1
|
)
|
|
(52.4
|
)
|
Fair value of plan assets
|
288.3
|
|
|
286.0
|
|
|
8.2
|
|
|
8.1
|
|
Funded status
|
(95.0
|
)
|
|
(50.1
|
)
|
|
(39.9
|
)
|
|
(44.3
|
)
|
Amounts recognized in the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
||
Non-current assets
|
2.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
Current liabilities
|
—
|
|
|
(0.9
|
)
|
|
(2.2
|
)
|
|
(2.5
|
)
|
Non-current liabilities
|
(97.0
|
)
|
|
(50.2
|
)
|
|
(37.7
|
)
|
|
(41.8
|
)
|
Funded status
|
(95.0
|
)
|
|
(50.1
|
)
|
|
(39.9
|
)
|
|
(44.3
|
)
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
January 1
|
336.1
|
|
|
330.2
|
|
|
52.4
|
|
|
48.5
|
|
Service cost
|
4.4
|
|
|
4.1
|
|
|
0.5
|
|
|
0.6
|
|
Interest cost
|
19.1
|
|
|
18.2
|
|
|
2.3
|
|
|
2.7
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
Actuarial (gains)/losses
|
41.8
|
|
|
4.6
|
|
|
(5.2
|
)
|
|
2.4
|
|
Exchange difference
|
(4.1
|
)
|
|
(11.8
|
)
|
|
—
|
|
|
—
|
|
Benefits paid
|
(14.0
|
)
|
|
(9.2
|
)
|
|
(2.4
|
)
|
|
(2.3
|
)
|
December 31
|
383.3
|
|
|
336.1
|
|
|
48.1
|
|
|
52.4
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Discount rate
|
4.92
|
%
|
|
5.65
|
%
|
|
4.34
|
%
|
|
5.20
|
%
|
Expected rate of salary increases
|
3.34
|
%
|
|
3.60
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
Future pension/medical cost trend rate increases
|
3.22
|
%
|
|
3.49
|
%
|
|
5.00%-8.00%
|
|
|
5.00%-8.00%
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
January 1
|
286.0
|
|
|
262.9
|
|
|
8.1
|
|
|
7.3
|
|
Actual return on plan assets
|
9.5
|
|
|
33.2
|
|
|
0.2
|
|
|
0.8
|
|
Exchange difference
|
(0.6
|
)
|
|
(5.9
|
)
|
|
—
|
|
|
—
|
|
Contributions from the company
|
6.6
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
Benefits paid
|
(12.8
|
)
|
|
(9.2
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
Settlement and other
|
(0.4
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
December 31
|
288.3
|
|
|
286.0
|
|
|
8.2
|
|
|
8.1
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Prior service cost/(credit)
|
—
|
|
|
—
|
|
|
(11.9
|
)
|
|
(13.9
|
)
|
Net actuarial loss/(gain)
|
102.2
|
|
|
56.6
|
|
|
7.9
|
|
|
13.1
|
|
Total
|
102.2
|
|
|
56.6
|
|
|
(4.0
|
)
|
|
(0.8
|
)
|
$ in millions
|
Retirement Plans
|
|
Medical Plan
|
||
Prior service cost/(credit)
|
—
|
|
|
(2.0
|
)
|
Net actuarial loss/(gain)
|
6.0
|
|
|
1.3
|
|
Total
|
6.0
|
|
|
(0.7
|
)
|
|
Retirement Plans
|
||||
$ in millions
|
2011
|
|
2010
|
||
Plans with accumulated benefit obligation in excess of plan assets:
|
|
|
|
||
Accumulated benefit obligation
|
371.8
|
|
|
321.9
|
|
Fair value of plan assets
|
274.6
|
|
|
274.2
|
|
Plans with projected benefit obligation in excess of plan assets:
|
|
|
|
|
|
Projected benefit obligation
|
371.8
|
|
|
321.9
|
|
Fair value of plan assets
|
274.6
|
|
|
274.2
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||||||||
$ in millions
|
2011
|
|
2010
|
|
2009
|
|
2011
|
|
2010
|
|
2009
|
||||||
Service cost
|
(4.4
|
)
|
|
(4.1
|
)
|
|
(3.9
|
)
|
|
(0.5
|
)
|
|
(0.6
|
)
|
|
(0.2
|
)
|
Interest cost
|
(19.1
|
)
|
|
(18.2
|
)
|
|
(16.6
|
)
|
|
(2.3
|
)
|
|
(2.7
|
)
|
|
(2.7
|
)
|
Expected return on plan assets
|
17.6
|
|
|
14.9
|
|
|
14.4
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
Amortization of prior service cost/(credit)
|
—
|
|
|
(3.0
|
)
|
|
(0.1
|
)
|
|
2.0
|
|
|
2.0
|
|
|
2.0
|
|
Amortization of net actuarial gain/(loss)
|
(1.2
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
(0.3
|
)
|
|
(2.7
|
)
|
|
(3.6
|
)
|
Settlement
|
—
|
|
|
0.6
|
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Net periodic benefit cost
|
(7.1
|
)
|
|
(9.8
|
)
|
|
(12.9
|
)
|
|
(0.6
|
)
|
|
(3.6
|
)
|
|
(4.1
|
)
|
$ in millions
|
Increase
|
|
Decrease
|
||
Effect on aggregate service and interest costs
|
0.3
|
|
|
(0.3
|
)
|
Effect on defined benefit obligation
|
6.1
|
|
|
(5.1
|
)
|
$ in millions
|
Retirement Plans
|
|
% Fair Value of Plan Assets
|
|
Medical Plan
|
|
% Fair Value of Plan Assets
|
||||
Cash and cash equivalents
|
1.9
|
|
|
0.7
|
%
|
|
0.2
|
|
|
2.4
|
%
|
Fund investments
|
126.1
|
|
|
43.7
|
%
|
|
8.0
|
|
|
97.6
|
%
|
Equity securities
|
107.5
|
|
|
37.3
|
%
|
|
—
|
|
|
—
|
%
|
Government debt securities
|
38.1
|
|
|
13.2
|
%
|
|
—
|
|
|
—
|
%
|
Other assets
|
0.8
|
|
|
0.3
|
%
|
|
—
|
|
|
—
|
%
|
Guaranteed investments contracts
|
13.9
|
|
|
4.8
|
%
|
|
—
|
|
|
—
|
%
|
Total
|
288.3
|
|
|
100.0
|
%
|
|
8.2
|
|
|
100
|
%
|
$ in millions
|
Retirement Plans
|
|
Medical Plan
|
||
Cash and cash equivalents
|
5.8
|
|
|
0.3
|
|
Fund investments
|
132.9
|
|
|
7.6
|
|
Equity securities
|
99.6
|
|
|
0.2
|
|
Government debt securities
|
32.9
|
|
|
—
|
|
Other assets
|
0.6
|
|
|
—
|
|
Guaranteed investments contracts
|
14.2
|
|
|
—
|
|
Total
|
286.0
|
|
|
8.1
|
|
•
|
Funding - to have sufficient assets available to pay members benefits;
|
•
|
Security - to maintain the minimum Funding Requirement;
|
•
|
Stability - to have due regard to the employer's ability in meeting contribution payments given their size and incidence.
|
|
As of December 31, 2011
|
||||||||||
$ 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)
|
||||
Cash and cash equivalents
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Fund investments
|
134.1
|
|
|
134.1
|
|
|
—
|
|
|
—
|
|
Equity securities
|
107.5
|
|
|
107.5
|
|
|
—
|
|
|
—
|
|
Government debt securities
|
38.1
|
|
|
12.1
|
|
|
26.0
|
|
|
—
|
|
Other assets
|
0.8
|
|
0.8
|
|
—
|
|
|
—
|
|
||
Guaranteed investments contracts
|
13.9
|
|
|
—
|
|
|
—
|
|
|
13.9
|
|
Total
|
294.6
|
|
|
254.7
|
|
|
26.0
|
|
|
13.9
|
|
|
As of December 31, 2010
|
||||||||||
$ 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)
|
||||
Cash and cash equivalents
|
0.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
Fund investments
|
140.5
|
|
|
140.5
|
|
|
—
|
|
|
—
|
|
Equity securities
|
99.8
|
|
|
99.8
|
|
|
—
|
|
|
—
|
|
Government debt securities
|
32.9
|
|
|
10.6
|
|
|
22.3
|
|
|
—
|
|
Other assets
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
Guaranteed investments contracts
|
14.2
|
|
|
—
|
|
|
—
|
|
|
14.2
|
|
Total
|
288.3
|
|
|
251.8
|
|
|
22.3
|
|
|
14.2
|
|
$ in millions
|
Year ended December 31, 2011
|
|
Year ended December 31, 2010
|
||
Balance, beginning of year
|
14.2
|
|
|
13.9
|
|
Unrealized gains/(losses) relating to the instrument still held at the reporting date
|
0.8
|
|
|
2.7
|
|
Purchases, sales, issuances and settlements (net)
|
(1.1
|
)
|
|
(2.4
|
)
|
Balance, end of year
|
13.9
|
|
|
14.2
|
|
$ in millions
|
Retirement Plans
|
|
Medical Plan
|
||
Expected benefit payments:
|
|
|
|
||
2012
|
7.8
|
|
|
2.3
|
|
2013
|
8.0
|
|
|
2.5
|
|
2014
|
8.4
|
|
|
2.7
|
|
2015
|
9.8
|
|
|
2.8
|
|
2016
|
9.7
|
|
|
2.9
|
|
Thereafter in the succeeding five years
|
62.1
|
|
|
15.0
|
|
$ in millions
|
Total
|
|
Buildings
|
|
Other
|
|||
|
|
|
|
|
|
|||
2012
|
69.4
|
|
|
65.0
|
|
|
4.4
|
|
2013
|
67.0
|
|
|
62.7
|
|
|
4.3
|
|
2014
|
66.1
|
|
|
61.9
|
|
|
4.2
|
|
2015
|
66.9
|
|
|
63.5
|
|
|
3.4
|
|
2016
|
60.1
|
|
|
58.3
|
|
|
1.8
|
|
Thereafter
|
288.5
|
|
|
285.8
|
|
|
2.7
|
|
Gross lease commitments
|
618.0
|
|
|
597.2
|
|
|
20.8
|
|
Less: future minimum payments expected to be received under non-cancelable subleases
|
84.2
|
|
|
84.2
|
|
|
—
|
|
Net lease commitments
|
533.8
|
|
|
513.0
|
|
|
20.8
|
|
$ in millions
|
2011
|
|
2010
|
|
2009
|
|||
Other gains:
|
|
|
|
|
|
|||
Gain on sale of investments
|
9.4
|
|
|
9.9
|
|
|
5.9
|
|
Unrealized gain on trading investments, net
|
—
|
|
|
14.2
|
|
|
—
|
|
Net foreign exchange gains
|
—
|
|
|
—
|
|
|
8.4
|
|
Settlement of litigation
(1)
|
45.0
|
|
|
—
|
|
|
—
|
|
Net gain generated upon debt tender offer
|
—
|
|
|
—
|
|
|
3.3
|
|
Total other gains
|
54.4
|
|
|
24.1
|
|
|
17.6
|
|
Other losses:
|
|
|
|
|
|
|
|
|
Other-than-temporary impairment of available-for-sale investments
|
(1.0
|
)
|
|
(7.0
|
)
|
|
(8.2
|
)
|
Unrealized loss on trading investments, net
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
Net foreign exchange losses
|
(0.6
|
)
|
|
(0.2
|
)
|
|
—
|
|
Other realized losses
|
(1.2
|
)
|
|
(1.3
|
)
|
|
(1.6
|
)
|
Total other losses
|
(5.4
|
)
|
|
(8.5
|
)
|
|
(9.8
|
)
|
Other gains and losses, net
|
49.0
|
|
|
15.6
|
|
|
7.8
|
|
(1)
|
Included within other gains and losses in the year ended
December 31, 2011
is a credit of
$45.0 million
related to the settlement of litigation arising from the 2007 departure of certain investment professionals to a competitor.
|
$ in millions
|
2011
|
|
2010
|
|
2009
|
|||
Current:
|
|
|
|
|
|
|||
Federal
|
(94.4
|
)
|
|
(44.6
|
)
|
|
(6.7
|
)
|
State
|
(15.4
|
)
|
|
(9.9
|
)
|
|
(1.4
|
)
|
Foreign
|
(108.7
|
)
|
|
(122.8
|
)
|
|
(130.3
|
)
|
|
(218.5
|
)
|
|
(177.3
|
)
|
|
(138.4
|
)
|
Deferred:
|
|
|
|
|
|
|
|
|
Federal
|
(54.1
|
)
|
|
(10.2
|
)
|
|
(9.2
|
)
|
State
|
(1.1
|
)
|
|
2.0
|
|
|
(0.6
|
)
|
Foreign
|
(12.4
|
)
|
|
(11.5
|
)
|
|
—
|
|
|
(67.6
|
)
|
|
(19.7
|
)
|
|
(9.8
|
)
|
Total income tax (provision)/benefit
|
(286.1
|
)
|
|
(197.0
|
)
|
|
(148.2
|
)
|
$ in millions
|
2011
|
|
2010
|
||
Deferred tax assets:
|
|
|
|
||
Deferred compensation arrangements
|
75.7
|
|
|
113.1
|
|
Accrued rent expenses
|
19.9
|
|
|
14.4
|
|
Tax loss carryforwards
|
140.9
|
|
|
130.1
|
|
Postretirement medical, pension and other benefits
|
40.4
|
|
|
28.2
|
|
Investment basis differences
|
22.9
|
|
|
17.4
|
|
Other
|
20.6
|
|
|
14.3
|
|
Total deferred tax assets
|
320.4
|
|
|
317.5
|
|
Valuation allowance
|
(140.9
|
)
|
|
(129.7
|
)
|
Deferred tax assets, net of valuation allowance
|
179.5
|
|
|
187.8
|
|
Deferred tax liabilities:
|
|
|
|
|
|
Deferred sales commissions
|
(14.4
|
)
|
|
(12.5
|
)
|
Goodwill and Intangibles
|
(381.4
|
)
|
|
(361.1
|
)
|
Undistributed earnings of subsidiaries
|
(3.5
|
)
|
|
(3.1
|
)
|
Revaluation reserve
|
(5.0
|
)
|
|
(5.1
|
)
|
Other
|
(20.5
|
)
|
|
(4.6
|
)
|
Total deferred tax liabilities
|
(424.8
|
)
|
|
(386.4
|
)
|
Net deferred tax assets/(liabilities)
|
(245.3
|
)
|
|
(198.6
|
)
|
|
2011
|
|
2010
|
|
2009
|
|||
Statutory Rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Foreign jurisdiction statutory income tax rates
|
(10.0
|
)%
|
|
(9.7
|
)%
|
|
(7.4
|
)%
|
State taxes, net of federal tax effect
|
1.5
|
%
|
|
1.2
|
%
|
|
1.4
|
%
|
Change in valuation allowance for unrecognized tax losses
|
1.5
|
%
|
|
2.3
|
%
|
|
4.2
|
%
|
Other
|
0.2
|
%
|
|
0.9
|
%
|
|
(1.7
|
)%
|
Effective tax rate (excluding noncontrolling interests)
|
28.2
|
%
|
|
29.7
|
%
|
|
31.5
|
%
|
(Gains)/losses attributable to noncontrolling interests
|
3.3
|
%
|
|
(6.1
|
)%
|
|
10.0
|
%
|
Effective tax rate per Consolidated Statements of Income
|
31.5
|
%
|
|
23.6
|
%
|
|
41.5
|
%
|
$ in millions
|
Gross Unrecognized Income Tax Benefits
|
|
Balance at January 1, 2009
|
55.9
|
|
Additions for tax positions related to the current year
|
0.3
|
|
Additions for tax positions related to prior years
|
4.1
|
|
Other reductions for tax positions related to prior years
|
(6.0
|
)
|
Reductions for statute closings
|
(15.3
|
)
|
Balance at December 31, 2009
|
39.0
|
|
Additions for tax positions related to the current year
|
—
|
|
Additions for tax positions related to prior years
|
1.8
|
|
Other reductions for tax positions related to prior years
|
(0.5
|
)
|
Reductions for statute closings
|
(13.2
|
)
|
Balance at December 31, 2010
|
27.1
|
|
Additions for tax positions related to the current year
|
—
|
|
Additions for tax positions related to prior years
|
1.4
|
|
Other reductions for tax positions related to prior years
|
(5.2
|
)
|
Reductions for statute closings
|
(3.8
|
)
|
Balance at December 31, 2011
|
19.5
|
|
$ in millions, except per share data
|
Net Income Attributable to Common Shareholders
|
|
Weighted Average Number of Shares
|
|
Per Share Amount
|
|||||
For the year ended December 31, 2011
|
|
|
|
|
|
|||||
Basic earnings per share
|
|
$729.7
|
|
|
462.9
|
|
|
|
$1.58
|
|
Dilutive effect of share-based awards
|
—
|
|
|
1.8
|
|
|
—
|
|
||
Diluted earnings per share
|
|
$729.7
|
|
|
464.7
|
|
|
|
$1.57
|
|
For the year ended December 31, 2010
|
|
|
|
|
|
|||||
Basic earnings per share
|
|
$465.7
|
|
|
460.4
|
|
|
|
$1.01
|
|
Dilutive effect of share-based awards
|
—
|
|
|
2.8
|
|
|
—
|
|
||
Diluted earnings per share
|
|
$465.7
|
|
|
463.2
|
|
|
|
$1.01
|
|
For the year ended December 31, 2009
|
|
|
|
|
|
|||||
Basic earnings per share
|
|
$322.5
|
|
|
417.2
|
|
|
|
$0.77
|
|
Dilutive effect of share-based awards
|
—
|
|
|
6.4
|
|
|
—
|
|
||
Diluted earnings per share
|
|
$322.5
|
|
|
423.6
|
|
|
|
$0.76
|
|
$ in millions
|
U.S.
|
|
U.K./Ireland
|
|
Canada
|
|
Continental Europe
|
|
Asia
|
|
Total
|
||||||
For the year ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,090.2
|
|
|
1,473.1
|
|
|
372.3
|
|
|
38.8
|
|
|
117.8
|
|
|
4,092.2
|
|
Inter-company revenue
|
(8.1
|
)
|
|
(152.8
|
)
|
|
(14.1
|
)
|
|
76.7
|
|
|
98.3
|
|
|
—
|
|
Total operating revenues
|
2,082.1
|
|
|
1,320.3
|
|
|
358.2
|
|
|
115.5
|
|
|
216.1
|
|
|
4,092.2
|
|
Long-lived assets
|
196.7
|
|
|
81.5
|
|
|
7.9
|
|
|
4.9
|
|
|
21.8
|
|
|
312.8
|
|
For the year ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
1,680.8
|
|
|
1,305.8
|
|
|
370.7
|
|
|
44.3
|
|
|
86.1
|
|
|
3,487.7
|
|
Inter-company revenue
|
9.8
|
|
|
(131.3
|
)
|
|
(10.1
|
)
|
|
56.3
|
|
|
75.3
|
|
|
—
|
|
Total operating revenues
|
1,690.6
|
|
|
1,174.5
|
|
|
360.6
|
|
|
100.6
|
|
|
161.4
|
|
|
3,487.7
|
|
Long-lived assets
|
169.3
|
|
|
79.6
|
|
|
7.6
|
|
|
2.8
|
|
|
13.1
|
|
|
272.4
|
|
For the year ended December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
1,131.6
|
|
|
1,037.9
|
|
|
353.1
|
|
|
42.8
|
|
|
61.9
|
|
|
2,627.3
|
|
Inter-company revenue
|
11.0
|
|
|
(103.7
|
)
|
|
(8.8
|
)
|
|
43.4
|
|
|
58.1
|
|
|
—
|
|
Total operating revenues
|
1,142.6
|
|
|
934.2
|
|
|
344.3
|
|
|
86.2
|
|
|
120.0
|
|
|
2,627.3
|
|
Long-lived assets
|
127.2
|
|
|
75.0
|
|
|
7.7
|
|
|
3.1
|
|
|
7.7
|
|
|
220.7
|
|
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Company's Maximum Risk of Loss
|
|||
Partnership and trust investments
|
—
|
|
|
32.1
|
|
|
32.1
|
|
Investments in Invesco Mortgage Capital Inc.
|
—
|
|
|
25.5
|
|
|
25.5
|
|
Support agreements*
|
19
|
|
|
(1.0
|
)
|
|
41.0
|
|
Total
|
|
98.6
|
|
*
|
As of
December 31, 2011
, the committed support under these agreements was
$41.0 million
with an internal approval mechanism to increase the maximum possible support to
$66.0 million
at the option of the company.
|
|
|
For the year ended December 31, 2010
|
||||
$ in millions
|
|
CLOs - VIEs
|
|
VOEs
|
||
Current assets
|
|
281.6
|
|
|
96.0
|
|
Non-current assets
|
|
6,188.1
|
|
|
289.9
|
|
Total assets
|
|
6,469.7
|
|
|
385.9
|
|
Current liabilities
|
|
162.6
|
|
|
1.6
|
|
Non-current liabilities
|
|
5,883.4
|
|
|
—
|
|
Total liabilities
|
|
6,046.0
|
|
|
1.6
|
|
Total equity
|
|
423.7
|
|
|
384.3
|
|
Total liabilities and equity
|
|
6,469.7
|
|
|
385.9
|
|
$ in millions
|
Before Consolidation
(1)
|
|
CLOs - VIEs
(2)
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Total
|
||||||
As of December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current assets
|
3,352.7
|
|
|
394.5
|
|
|
3.1
|
|
|
113.7
|
|
|
(29.9
|
)
|
|
3,834.1
|
|
Non-current assets
|
8,976.5
|
|
|
5,682.3
|
|
|
42.8
|
|
|
903.8
|
|
|
(92.5
|
)
|
|
15,512.9
|
|
Total assets
|
12,329.2
|
|
|
6,076.8
|
|
|
45.9
|
|
|
1,017.5
|
|
|
(122.4
|
)
|
|
19,347.0
|
|
Current liabilities
|
2,818.9
|
|
|
179.2
|
|
|
0.4
|
|
|
5.8
|
|
|
(29.9
|
)
|
|
2,974.4
|
|
Long-term debt of consolidated investment products
|
—
|
|
|
5,563.3
|
|
|
—
|
|
|
—
|
|
|
(50.4
|
)
|
|
5,512.9
|
|
Other non-current liabilities
|
1,722.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,722.1
|
|
Total liabilities
|
4,541.0
|
|
|
5,742.5
|
|
|
0.4
|
|
|
5.8
|
|
|
(80.3
|
)
|
|
10,209.4
|
|
Retained earnings appropriated for investors in consolidated investment products
|
—
|
|
|
334.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
334.3
|
|
Other equity attributable to common shareholders
|
7,783.7
|
|
|
—
|
|
|
0.1
|
|
|
43.1
|
|
|
(42.1
|
)
|
|
7,784.8
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
4.5
|
|
|
—
|
|
|
45.4
|
|
|
968.6
|
|
|
—
|
|
|
1,018.5
|
|
Total liabilities and equity
|
12,329.2
|
|
|
6,076.8
|
|
|
45.9
|
|
|
1,017.5
|
|
|
(122.4
|
)
|
|
19,347.0
|
|
$ in millions
|
Before Consolidation
(1)
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Total
|
||||||
As of December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current assets
|
3,480.0
|
|
|
679.3
|
|
|
3.7
|
|
|
133.8
|
|
|
(22.3
|
)
|
|
4,274.5
|
|
Non-current assets
|
9,025.1
|
|
|
6,204.6
|
|
|
59.6
|
|
|
941.3
|
|
|
(61.0
|
)
|
|
16,169.6
|
|
Total assets
|
12,505.1
|
|
|
6,883.9
|
|
|
63.3
|
|
|
1,075.1
|
|
|
(83.3
|
)
|
|
20,444.1
|
|
Current liabilities
|
2,777.9
|
|
|
500.2
|
|
|
0.9
|
|
|
7.8
|
|
|
(22.3
|
)
|
|
3,264.5
|
|
Long-term debt of consolidated investment products
|
—
|
|
|
5,888.2
|
|
|
—
|
|
|
—
|
|
|
(22.8
|
)
|
|
5,865.4
|
|
Other non-current liabilities
|
1,953.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,953.3
|
|
Total liabilities
|
4,731.2
|
|
|
6,388.4
|
|
|
0.9
|
|
|
7.8
|
|
|
(45.1
|
)
|
|
11,083.2
|
|
Retained earnings appropriated for investors in consolidated investment products
|
—
|
|
|
495.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
495.5
|
|
Other equity attributable to common shareholders
|
7,769.1
|
|
|
—
|
|
|
0.1
|
|
|
38.1
|
|
|
(38.2
|
)
|
|
7,769.1
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
4.8
|
|
|
—
|
|
|
62.3
|
|
|
1,029.2
|
|
|
—
|
|
|
1,096.3
|
|
Total liabilities and equity
|
12,505.1
|
|
|
6,883.9
|
|
|
63.3
|
|
|
1,075.1
|
|
|
(83.3
|
)
|
|
20,444.1
|
|
(1)
|
The Before Consolidation column includes the company's equity interest in the investment products subsequently consolidated, accounted for as equity method and available-for-sale investments.
|
(2)
|
Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products, primarily the elimination of the company's equity at risk recorded as investments by the company (before consolidation) against either equity (private equity and real estate partnership funds) or subordinated debt (CLOs) of the funds.
|
$ in millions
|
Before Consolidation
(1)
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(1)(2)
|
|
Total
|
||||||
Year ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating revenues
|
4,139.4
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(47.3
|
)
|
|
4,092.2
|
|
Total operating expenses
|
3,181.1
|
|
|
46.7
|
|
|
1.0
|
|
|
12.6
|
|
|
(47.3
|
)
|
|
3,194.1
|
|
Operating income
|
958.3
|
|
|
(46.7
|
)
|
|
(1.0
|
)
|
|
(12.5
|
)
|
|
—
|
|
|
898.1
|
|
Equity in earnings of unconsolidated affiliates
|
30.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
30.5
|
|
Interest and dividend income
|
19.3
|
|
|
307.2
|
|
|
—
|
|
|
—
|
|
|
(8.3
|
)
|
|
318.2
|
|
Other investment income/(losses)
|
49.0
|
|
|
(235.1
|
)
|
|
1.0
|
|
|
74.9
|
|
|
20.3
|
|
|
(89.9
|
)
|
Interest expense
|
(61.8
|
)
|
|
(195.3
|
)
|
|
—
|
|
|
—
|
|
|
8.3
|
|
|
(248.8
|
)
|
Income before income taxes
|
995.5
|
|
|
(169.9
|
)
|
|
—
|
|
|
62.4
|
|
|
20.1
|
|
|
908.1
|
|
Income tax provision
|
(286.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(286.1
|
)
|
Net income
|
709.4
|
|
|
(169.9
|
)
|
|
—
|
|
|
62.4
|
|
|
20.1
|
|
|
622.0
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
0.1
|
|
|
169.9
|
|
|
—
|
|
|
(62.3
|
)
|
|
—
|
|
|
107.7
|
|
Net income attributable to common shareholders
|
709.5
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
20.1
|
|
|
729.7
|
|
$ in millions
|
Before Consolidation
(1)
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(1)(2)
|
|
Total
|
||||||
Year ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating revenues
|
3,532.7
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(45.3
|
)
|
|
3,487.7
|
|
Total operating expenses
|
2,887.8
|
|
|
41.4
|
|
|
1.6
|
|
|
12.3
|
|
|
(45.3
|
)
|
|
2,897.8
|
|
Operating income
|
644.9
|
|
|
(41.4
|
)
|
|
(1.6
|
)
|
|
(12.0
|
)
|
|
—
|
|
|
589.9
|
|
Equity in earnings of unconsolidated affiliates
|
40.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
40.2
|
|
Interest and dividend income
|
10.4
|
|
|
246.0
|
|
|
—
|
|
|
—
|
|
|
(5.1
|
)
|
|
251.3
|
|
Other investment income/(losses)
|
15.6
|
|
|
(3.8
|
)
|
|
6.9
|
|
|
104.5
|
|
|
6.4
|
|
|
129.6
|
|
Interest expense
|
(58.6
|
)
|
|
(123.7
|
)
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
(177.2
|
)
|
Income before income taxes
|
653.1
|
|
|
77.1
|
|
|
5.3
|
|
|
92.5
|
|
|
5.8
|
|
|
833.8
|
|
Income tax provision
|
(197.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(197.0
|
)
|
Net income
|
456.1
|
|
|
77.1
|
|
|
5.3
|
|
|
92.5
|
|
|
5.8
|
|
|
636.8
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
(0.2
|
)
|
|
(77.1
|
)
|
|
(5.3
|
)
|
|
(88.4
|
)
|
|
(0.1
|
)
|
|
(171.1
|
)
|
Net income attributable to common shareholders
|
455.9
|
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
5.7
|
|
|
465.7
|
|
$ in millions
|
Before Consolidation
(1)
|
|
VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Total
|
|||||
Year ended December 31, 2009
|
|
|
|
|
|
|
|
|
|
|||||
Total operating revenues
|
2,633.3
|
|
|
0.3
|
|
|
1.6
|
|
|
(7.9
|
)
|
|
2,627.3
|
|
Total operating expenses
|
2,139.5
|
|
|
1.8
|
|
|
9.6
|
|
|
(7.9
|
)
|
|
2,143.0
|
|
Operating income
|
493.8
|
|
|
(1.5
|
)
|
|
(8.0
|
)
|
|
—
|
|
|
484.3
|
|
Equity in earnings of unconsolidated affiliates
|
24.5
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
27.0
|
|
Interest and dividend income
|
9.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
Other investment income/(losses)
|
7.8
|
|
|
(11.6
|
)
|
|
(95.3
|
)
|
|
—
|
|
|
(99.1
|
)
|
Interest expense
|
(64.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64.5
|
)
|
Income before income taxes
|
471.4
|
|
|
(13.1
|
)
|
|
(103.3
|
)
|
|
2.5
|
|
|
357.5
|
|
Income tax provision
|
(148.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(148.2
|
)
|
Net income/(loss)
|
323.2
|
|
|
(13.1
|
)
|
|
(103.3
|
)
|
|
2.5
|
|
|
209.3
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
(0.7
|
)
|
|
13.1
|
|
|
100.8
|
|
|
—
|
|
|
113.2
|
|
Net income attributable to common shareholders
|
322.5
|
|
|
—
|
|
|
(2.5
|
)
|
|
2.5
|
|
|
322.5
|
|
(1)
|
The Before Consolidation column includes Invesco's equity interest in the investment products accounted for as equity method (private equity and real estate partnership funds) and available-for-sale investments (CLOs). Upon consolidation of the CLOs, the company's and the CLOs' accounting policies are effectively aligned, resulting in the reclassification of the company's
gain
for the year ended
December 31, 2011
of
$20.3 million
(representing the increase in the market value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses (year ended
December 31, 2010
:
$6.4 million
). The company's gain on its investment in the CLOs (before consolidation) eliminates with the company's share of the offsetting loss on the CLOs' debt. The net income arising from consolidation of CLOs is therefore completely attributed to other investors in these CLOs, as the company's share has been eliminated through consolidation. The accounting guidance now encompassed in ASC 810 was effective January 1, 2010. Prior periods were not required to be restated for the consolidation of the CLOs.
|
(2)
|
Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products, primarily the elimination of management fees expensed by the funds and recorded as operating revenues (before consolidation) by the company.
|
|
As of December 31, 2011
|
||||||||||
$ 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)
|
||||
Assets:
|
|
|
|
|
|
|
|
||||
CLO collateral assets:
|
|
|
|
|
|
|
|
||||
Bank loans
|
5,354.3
|
|
|
—
|
|
|
5,354.3
|
|
|
—
|
|
Bonds
|
292.8
|
|
|
—
|
|
|
292.8
|
|
|
—
|
|
Equity securities
|
35.3
|
|
|
—
|
|
|
35.3
|
|
|
—
|
|
CLO-related derivative assets
|
10.8
|
|
|
—
|
|
|
10.8
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
||||
Equity securities
|
138.2
|
|
|
11.4
|
|
|
0.1
|
|
|
126.7
|
|
Debt Securities
|
10.0
|
|
|
|
|
|
|
10.0
|
|
||
Investments in other private equity funds
|
559.5
|
|
|
—
|
|
|
—
|
|
|
559.5
|
|
Debt securities issued by the U.S. Treasury
|
6.0
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
Real estate investments
|
232.9
|
|
|
—
|
|
|
—
|
|
|
232.9
|
|
Total assets at fair value
|
6,639.8
|
|
|
17.4
|
|
|
5,693.3
|
|
|
929.1
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
CLO notes
|
(5,512.9
|
)
|
|
—
|
|
|
—
|
|
|
(5,512.9
|
)
|
CLO-related derivative liabilities
|
(5.8
|
)
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Total liabilities at fair value
|
(5,518.7
|
)
|
|
—
|
|
|
(5.8
|
)
|
|
(5,512.9
|
)
|
|
As of December 31, 2010
|
||||||||||
$ 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) |
||||
Assets:
|
|
|
|
|
|
|
|
||||
CLO collateral assets:
|
|
|
|
|
|
|
|
||||
Bank loans
|
5,910.6
|
|
|
—
|
|
|
5,910.6
|
|
|
—
|
|
Bonds
|
261.1
|
|
|
—
|
|
|
261.1
|
|
|
—
|
|
Equity securities
|
32.9
|
|
|
—
|
|
|
32.9
|
|
|
—
|
|
CLO-related derivative assets
|
20.2
|
|
|
—
|
|
|
20.2
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
||||
Equity securities
|
114.4
|
|
|
17.6
|
|
|
—
|
|
|
96.8
|
|
Investments in other private equity funds
|
586.1
|
|
|
—
|
|
|
—
|
|
|
586.1
|
|
Debt securities issued by the U.S. Treasury
|
11.0
|
|
|
11.0
|
|
|
—
|
|
|
—
|
|
Real estate investments
|
289.9
|
|
|
—
|
|
|
—
|
|
|
289.9
|
|
Total assets at fair value
|
7,226.2
|
|
|
28.6
|
|
|
6,224.8
|
|
|
972.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
CLO notes
|
(5,865.4
|
)
|
|
—
|
|
|
—
|
|
|
(5,865.4
|
)
|
CLO-related derivative liabilities
|
(6.6
|
)
|
|
—
|
|
|
(6.6
|
)
|
|
—
|
|
Total liabilities at fair value
|
(5,872.0
|
)
|
|
—
|
|
|
(6.6
|
)
|
|
(5,865.4
|
)
|
|
Year ended December 31, 2011
|
|
Year ended December 31, 2010
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
972.8
|
|
|
(5,865.4
|
)
|
|
667.1
|
|
|
(5,234.9
|
)
|
Purchases, sales, issuances and settlements/prepayments, net*
|
(135.4
|
)
|
|
530.4
|
|
|
(81.2
|
)
|
|
209.1
|
|
Acquisition of businesses
|
—
|
|
|
—
|
|
|
289.9
|
|
|
(630.2
|
)
|
Gains/(losses) included in the Consolidated Statement of Income**
|
81.1
|
|
|
(74.1
|
)
|
|
97.0
|
|
|
(414.3
|
)
|
Foreign exchange
|
10.6
|
|
|
(103.8
|
)
|
|
—
|
|
|
204.9
|
|
Ending balance
|
929.1
|
|
|
(5,512.9
|
)
|
|
972.8
|
|
|
(5,865.4
|
)
|
*
|
Prior to the adoption of guidance included in ASU 2010-06, discussed in Note 1, “Accounting Policies,” purchases, sales, issuances and settlements/prepayments were presented net. For the year ended
December 31, 2011
, the consolidated private equity and real estate funds recorded
$52.2 million
related to purchase activity and
$187.6 million
of sale activity, respectively, of level 3 assets. For the year ended
December 31, 2011
, the consolidated CLOs recorded
$530.4 million
related to the settlement of level 3 liabilities.
|
**
|
Included in gains and losses of consolidated investment products in the Condensed Consolidated Statement of Income for
t
he year ended
December 31, 2011
are
$24.1 million
in net unrealized
gains
attributable to investments still held at
December 31, 2011
by consolidated investment products (year ended
December 31, 2010
:
$46.5 million
net unrealized
gains
attributable to investments still held at
December 31, 2010
).
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets held for policyholders
|
—
|
|
|
1,243.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,243.5
|
|
Other current assets
|
245.8
|
|
|
2,326.6
|
|
|
4.2
|
|
|
14.0
|
|
|
—
|
|
|
2,590.6
|
|
Total current assets
|
245.8
|
|
|
3,570.1
|
|
|
4.2
|
|
|
14.0
|
|
|
—
|
|
|
3,834.1
|
|
Goodwill
|
2,312.8
|
|
|
4,161.8
|
|
|
433.3
|
|
|
—
|
|
|
—
|
|
|
6,907.9
|
|
Investments in subsidiaries
|
1,228.2
|
|
|
5.6
|
|
|
5,116.3
|
|
|
8,465.0
|
|
|
(14,815.1
|
)
|
|
—
|
|
Other non-current assets
|
626.0
|
|
|
7,969.8
|
|
|
6.2
|
|
|
3.0
|
|
|
—
|
|
|
8,605.0
|
|
Total assets
|
4,412.8
|
|
|
15,707.3
|
|
|
5,560.0
|
|
|
8,482.0
|
|
|
(14,815.1
|
)
|
|
19,347.0
|
|
Policyholder payables
|
—
|
|
|
1,243.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,243.5
|
|
Other current liabilities
|
133.8
|
|
|
1,362.8
|
|
|
233.6
|
|
|
0.7
|
|
|
—
|
|
|
1,730.9
|
|
Total current liabilities
|
133.8
|
|
|
2,606.3
|
|
|
233.6
|
|
|
0.7
|
|
|
—
|
|
|
2,974.4
|
|
Intercompany balances
|
918.3
|
|
|
(1,364.4
|
)
|
|
83.9
|
|
|
362.2
|
|
|
—
|
|
|
—
|
|
Non-current liabilities
|
611.4
|
|
|
6,093.0
|
|
|
530.6
|
|
|
—
|
|
|
—
|
|
|
7,235.0
|
|
Total liabilities
|
1,663.5
|
|
|
7,334.9
|
|
|
848.1
|
|
|
362.9
|
|
|
—
|
|
|
10,209.4
|
|
Total equity attributable to common shareholders
|
2,749.3
|
|
|
7,353.9
|
|
|
4,711.9
|
|
|
8,119.1
|
|
|
(14,815.1
|
)
|
|
8,119.1
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
—
|
|
|
1,018.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,018.5
|
|
Total equity
|
2,749.3
|
|
|
8,372.4
|
|
|
4,711.9
|
|
|
8,119.1
|
|
|
(14,815.1
|
)
|
|
9,137.6
|
|
Total liabilities and equity
|
4,412.8
|
|
|
15,707.3
|
|
|
5,560.0
|
|
|
8,482.0
|
|
|
(14,815.1
|
)
|
|
19,347.0
|
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets held for policyholders
|
—
|
|
|
1,295.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,295.4
|
|
Other current assets
|
175.7
|
|
|
2,766.7
|
|
|
3.0
|
|
|
33.7
|
|
|
—
|
|
|
2,979.1
|
|
Total current assets
|
175.7
|
|
|
4,062.1
|
|
|
3.0
|
|
|
33.7
|
|
|
—
|
|
|
4,274.5
|
|
Goodwill
|
2,322.9
|
|
|
4,216.5
|
|
|
440.8
|
|
|
—
|
|
|
—
|
|
|
6,980.2
|
|
Investments in subsidiaries
|
1,333.8
|
|
|
5.5
|
|
|
4,766.1
|
|
|
8,400.6
|
|
|
(14,506.0
|
)
|
|
—
|
|
Other non-current assets
|
557.0
|
|
|
8,625.0
|
|
|
4.5
|
|
|
2.9
|
|
|
—
|
|
|
9,189.4
|
|
Total assets
|
4,389.4
|
|
|
16,909.1
|
|
|
5,214.4
|
|
|
8,437.2
|
|
|
(14,506.0
|
)
|
|
20,444.1
|
|
Policyholder payables
|
—
|
|
|
1,295.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,295.4
|
|
Other current liabilities
|
112.5
|
|
|
1,850.4
|
|
|
5.5
|
|
|
0.7
|
|
|
—
|
|
|
1,969.1
|
|
Total current liabilities
|
112.5
|
|
|
3,145.8
|
|
|
5.5
|
|
|
0.7
|
|
|
—
|
|
|
3,264.5
|
|
Intercompany balances
|
1,299.8
|
|
|
(1,449.6
|
)
|
|
(22.1
|
)
|
|
171.9
|
|
|
—
|
|
|
—
|
|
Non-current liabilities
|
597.0
|
|
|
6,476.0
|
|
|
745.7
|
|
|
—
|
|
|
—
|
|
|
7,818.7
|
|
Total liabilities
|
2,009.3
|
|
|
8,172.2
|
|
|
729.1
|
|
|
172.6
|
|
|
—
|
|
|
11,083.2
|
|
Total equity attributable to common shareholders
|
2,380.1
|
|
|
7,640.6
|
|
|
4,485.3
|
|
|
8,264.6
|
|
|
(14,506.0
|
)
|
|
8,264.6
|
|
Equity attributable to noncontrolling interests in consolidated entities
|
—
|
|
|
1,096.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,096.3
|
|
Total equity
|
2,380.1
|
|
|
8,736.9
|
|
|
4,485.3
|
|
|
8,264.6
|
|
|
(14,506.0
|
)
|
|
9,360.9
|
|
Total liabilities and equity
|
4,389.4
|
|
|
16,909.1
|
|
|
5,214.4
|
|
|
8,437.2
|
|
|
(14,506.0
|
)
|
|
20,444.1
|
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
Year ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating revenues
|
1,299.5
|
|
|
2,792.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,092.2
|
|
Total operating expenses
|
798.7
|
|
|
2,380.8
|
|
|
—
|
|
|
14.6
|
|
|
—
|
|
|
3,194.1
|
|
Operating income/(loss)
|
500.8
|
|
|
411.9
|
|
|
—
|
|
|
(14.6
|
)
|
|
—
|
|
|
898.1
|
|
Equity in earnings of unconsolidated affiliates
|
(0.4
|
)
|
|
29.6
|
|
|
453.9
|
|
|
745.1
|
|
|
(1,197.7
|
)
|
|
30.5
|
|
Other income/(expense)
|
(88.2
|
)
|
|
70.9
|
|
|
(2.4
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(20.5
|
)
|
Income before income taxes
|
412.2
|
|
|
512.4
|
|
|
451.5
|
|
|
729.7
|
|
|
(1,197.7
|
)
|
|
908.1
|
|
Income tax provision
|
(111.5
|
)
|
|
(161.0
|
)
|
|
(13.6
|
)
|
|
—
|
|
|
—
|
|
|
(286.1
|
)
|
Net income
|
300.7
|
|
|
351.4
|
|
|
437.9
|
|
|
729.7
|
|
|
(1,197.7
|
)
|
|
622.0
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
—
|
|
|
107.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107.7
|
|
Net income attributable to common shareholders
|
300.7
|
|
|
459.1
|
|
|
437.9
|
|
|
729.7
|
|
|
(1,197.7
|
)
|
|
729.7
|
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
Year ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating revenues
|
1,031.6
|
|
|
2,456.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,487.7
|
|
Total operating expenses
|
742.4
|
|
|
2,140.2
|
|
|
—
|
|
|
15.2
|
|
|
—
|
|
|
2,897.8
|
|
Operating income/(loss)
|
289.2
|
|
|
315.9
|
|
|
—
|
|
|
(15.2
|
)
|
|
—
|
|
|
589.9
|
|
Equity in earnings of unconsolidated affiliates
|
5.7
|
|
|
33.4
|
|
|
266.5
|
|
|
477.3
|
|
|
(742.7
|
)
|
|
40.2
|
|
Other income/(expense)
|
(109.8
|
)
|
|
347.8
|
|
|
(41.9
|
)
|
|
7.6
|
|
|
—
|
|
|
203.7
|
|
Income before income taxes
|
185.1
|
|
|
697.1
|
|
|
224.6
|
|
|
469.7
|
|
|
(742.7
|
)
|
|
833.8
|
|
Income tax provision
|
(66.1
|
)
|
|
(129.2
|
)
|
|
2.3
|
|
|
(4.0
|
)
|
|
—
|
|
|
(197.0
|
)
|
Net income
|
119.0
|
|
|
567.9
|
|
|
226.9
|
|
|
465.7
|
|
|
(742.7
|
)
|
|
636.8
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
—
|
|
|
(171.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(171.1
|
)
|
Net income attributable to common shareholders
|
119.0
|
|
|
396.8
|
|
|
226.9
|
|
|
465.7
|
|
|
(742.7
|
)
|
|
465.7
|
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
Year ended December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating revenues
|
549.7
|
|
|
2,077.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,627.3
|
|
Total operating expenses
|
432.1
|
|
|
1,701.3
|
|
|
(3.3
|
)
|
|
12.9
|
|
|
—
|
|
|
2,143.0
|
|
Operating income/(loss)
|
117.6
|
|
|
376.3
|
|
|
3.3
|
|
|
(12.9
|
)
|
|
—
|
|
|
484.3
|
|
Equity in earnings of unconsolidated affiliates
|
17.1
|
|
|
53.3
|
|
|
148.3
|
|
|
326.3
|
|
|
(518.0
|
)
|
|
27.0
|
|
Other income/(expense)
|
(52.2
|
)
|
|
(82.3
|
)
|
|
(28.4
|
)
|
|
9.1
|
|
|
—
|
|
|
(153.8
|
)
|
Income before income taxes
|
82.5
|
|
|
347.3
|
|
|
123.2
|
|
|
322.5
|
|
|
(518.0
|
)
|
|
357.5
|
|
Income tax provision
|
(0.2
|
)
|
|
(136.5
|
)
|
|
(11.5
|
)
|
|
—
|
|
|
—
|
|
|
(148.2
|
)
|
Net income
|
82.3
|
|
|
210.8
|
|
|
111.7
|
|
|
322.5
|
|
|
(518.0
|
)
|
|
209.3
|
|
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
|
—
|
|
|
113.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113.2
|
|
Net income attributable to common shareholders
|
82.3
|
|
|
324.0
|
|
|
111.7
|
|
|
322.5
|
|
|
(518.0
|
)
|
|
322.5
|
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
Year ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by/(used in) operating activities
|
115.7
|
|
|
536.8
|
|
|
55.5
|
|
|
650.3
|
|
|
(393.5
|
)
|
|
964.8
|
|
Net cash (used in)/provided by investing activities
|
(76.5
|
)
|
|
486.9
|
|
|
(53.5
|
)
|
|
(6.3
|
)
|
|
(2.5
|
)
|
|
348.1
|
|
Net cash (used in)/provided by financing activities
|
(31.0
|
)
|
|
(1,042.5
|
)
|
|
—
|
|
|
(644.6
|
)
|
|
396.0
|
|
|
(1,322.1
|
)
|
(Decrease)/increase in cash and cash equivalents
|
8.2
|
|
|
(18.8
|
)
|
|
2.0
|
|
|
(0.6
|
)
|
|
—
|
|
|
(9.2
|
)
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
Year ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by/(used in) operating activities
|
84.4
|
|
|
219.8
|
|
|
58.4
|
|
|
161.1
|
|
|
(144.5
|
)
|
|
379.2
|
|
Net cash (used in)/provided by investing activities
|
(742.4
|
)
|
|
665.2
|
|
|
(57.5
|
)
|
|
209.7
|
|
|
(412.8
|
)
|
|
(337.8
|
)
|
Net cash (used in)/provided by financing activities
|
570.0
|
|
|
(822.7
|
)
|
|
—
|
|
|
(370.5
|
)
|
|
557.3
|
|
|
(65.9
|
)
|
(Decrease)/increase in cash and cash equivalents
|
(88.0
|
)
|
|
62.3
|
|
|
0.9
|
|
|
0.3
|
|
|
—
|
|
|
(24.5
|
)
|
$ in millions
|
Guarantors
|
|
Non-Guarantors
|
|
Issuer
|
|
Parent
|
|
Adjustments
|
|
Consolidated
|
||||||
Year ended December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by/(used in) operating activities
|
162.4
|
|
|
(182.0
|
)
|
|
1.0
|
|
|
218.5
|
|
|
162.8
|
|
|
362.7
|
|
Net cash (used in)/provided by investing activities
|
(26.1
|
)
|
|
(139.3
|
)
|
|
105.0
|
|
|
(538.0
|
)
|
|
496.0
|
|
|
(102.4
|
)
|
Net cash (used in)/provided by financing activities
|
(458.3
|
)
|
|
803.7
|
|
|
(107.5
|
)
|
|
320.2
|
|
|
(658.8
|
)
|
|
(100.7
|
)
|
(Decrease)/increase in cash and cash equivalents
|
(322.0
|
)
|
|
482.4
|
|
|
(1.5
|
)
|
|
0.7
|
|
|
—
|
|
|
159.6
|
|
3.1
|
Memorandum of Association of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
|
3.2
|
Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
|
4.1
|
Specimen Certificate for Common Shares of Invesco Ltd., incorporated by reference to exhibit 4.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
|
4.2
|
Indenture, dated as of February 27, 2003, for AMVESCAP’s 5.375% Senior Notes Due 2013, among AMVESCAP PLC, A I M Advisors, Inc., A I M Management Group Inc., INVESCO Institutional (N.A.), Inc., INVESCO North American Holdings, Inc. and SunTrust Bank, incorporated by reference to exhibit 2.12 to AMVESCAP’s Annual Report on Form 20-F for the year ended December 31, 2002, filed with the Securities and Exchange Commission on March 27, 2003
|
4.3
|
Indenture, dated as of December 14, 2004, for AMVESCAP’s 5.375% Senior Notes due 2014, among AMVESCAP PLC, A I M Advisors, Inc., A I M Management Group Inc., INVESCO Institutional (N.A.), Inc., INVESCO North American Holdings, Inc. and SunTrust Bank, incorporated by reference to exhibit 2.11 to AMVESCAP’s Annual Report on Form 20-F for the year ended December 31, 2004, filed with the Securities and Exchange Commission on June 29, 2005
|
4.4
|
Indenture, dated as of April 11, 2007, for AMVESCAP’s 5.625% Senior Notes Due 2012, among AMVESCAP PLC, A I M Advisors, Inc., A I M Management Group Inc., INVESCO Institutional (N.A.), Inc., INVESCO North American Holdings, Inc. and The Bank of New York Trust Company, N.A., incorporated by reference to exhibit 99.1 to AMVESCAP’s Report on Form 6-K, filed with the Securities and Exchange Commission on April 18, 2007
|
4.5
|
Supplemental Indenture No. 2, dated as of November 27, 2007, among INVESCO PLC, a public limited company organized under the laws of England and Wales, and formerly known as AMVESCAP PLC, A I M Advisors, Inc., A I M Management Group Inc., INVESCO Institutional (N.A.), Inc., and INVESCO North American Holdings, Inc., Invesco Ltd., a Bermuda corporation, and The Bank of New York Trust Company, N.A., incorporated by reference to exhibit 4.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 30, 2007
|
4.6
|
Supplemental Indenture, dated as of November 27, 2007, among INVESCO PLC, a public limited company organized under the laws of England and Wales, and formerly known as AMVESCAP PLC, A I M Advisors, Inc., A I M Management Group Inc., INVESCO Institutional (N.A.), Inc., and INVESCO North American Holdings, Inc., Invesco Ltd., a Bermuda corporation, and U.S. Bank National Association, as Successor Trustee to SunTrust Bank, incorporated by reference to exhibit 4.3 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 30, 2007
|
4.7
|
Supplemental Indenture, dated as of November 27, 2007, among INVESCO PLC, a public limited company organized under the laws of England and Wales, and formerly known as AMVESCAP PLC, A I M Advisors, Inc., A I M Management Group Inc., INVESCO Institutional (N.A.), Inc., and INVESCO North American Holdings, Inc., Invesco Ltd., a Bermuda corporation, and U.S. Bank National Association, as Successor Trustee to SunTrust Bank, incorporated by reference to exhibit 4.4 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 30, 2007
|
4.8
|
Supplemental Indenture No. 3, dated as of June 9, 2009, for the 5.625% Senior Notes due 2012, among Invesco Holding Company Limited (f/k/a AMVESCAP PLC), IVZ, Inc., and The Bank of New York Mellon Trust Company, N.A., incorporated by reference to exhibit 4.8 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on February 26, 2010
|
4.9
|
Supplemental Indenture No. 2, dated as of June 9, 2009, for the 5.375% Senior Notes due 2013, among Invesco Holding Company Limited (f/k/a AMVESCAP PLC), IVZ, Inc., and U.S. Bank National Association, as successor trustee to SunTrust Bank., incorporated by reference to exhibit 4.9 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on February 26, 2010
|
4.10
|
Supplemental Indenture No. 2, dated as of June 9, 2009, for the 5.375% Senior Notes due 2014, among Invesco Holding Company Limited (f/k/a AMVESCAP PLC), IVZ, Inc., and U.S. Bank National Association, as successor trustee to SunTrust Bank, incorporated by reference to exhibit 4.10 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on February 26, 2010
|
4.11
|
Guarantee, dated February 27, 2003, with respect to AMVESCAP’s 5.375% Senior Notes Due 2013, made by A I M Management Group Inc., A I M Advisors, Inc., INVESCO Institutional (N.A.), Inc. and INVESCO North American Holdings, Inc., incorporated by reference to exhibit 4.20 to AMVESCAP’s Annual Report on Form 20-F for the year ended December 31, 2002, filed with the Securities and Exchange Commission on March 27, 2003
|
Invesco Ltd.
|
|
|
|
By:
|
/s/ MARTIN L. FLANAGAN
|
Name:
|
Martin L. Flanagan
|
Title:
|
President and Chief Executive Officer
|
|
|
Date:
|
February 24, 2012
|
Name
|
Title
|
Date
|
|
|
|
/s/ MARTIN L. FLANAGAN
|
Chief Executive Officer (Principal Executive Officer) and President; Director
|
February 24, 2012
|
Martin L. Flanagan
|
|
|
/s/ LOREN M. STARR
|
Senior Managing Director and Chief Financial Officer (Principal Financial Officer)
|
February 24, 2012
|
Loren M. Starr
|
|
|
/s/ RODERICK G.H. ELLIS
|
Group Controller and Chief Accounting Officer (Principal Accounting Officer)
|
February 24, 2012
|
Roderick G.H. Ellis
|
|
|
/s/ REX D. ADAMS
|
Chairman and Director
|
February 24, 2012
|
Rex D. Adams
|
|
|
/s/ SIR JOHN BANHAM
|
Director
|
February 24, 2012
|
Sir John Banham
|
|
|
/s/ JOSEPH R. CANION
|
Director
|
February 24, 2012
|
Joseph R. Canion
|
|
|
/s/ C. ROBERT HENRIKSON
|
Director
|
February 24, 2012
|
C. Robert Henrikson
|
|
|
/s/ BEN F. JOHNSON, III
|
Director
|
February 24, 2012
|
Ben F. Johnson, III
|
|
|
/s/ DENIS KESSLER
|
Director
|
February 24, 2012
|
Denis Kessler
|
|
|
/s/ EDWARD P. LAWRENCE
|
Director
|
February 24, 2012
|
Edward P. Lawrence
|
|
|
/s/ J. THOMAS PRESBY
|
Director
|
February 24, 2012
|
J. Thomas Presby
|
|
|
/s/ JAMES I. ROBERTSON
|
Director
|
February 24, 2012
|
James I. Robertson
|
|
|
/s/ PHOEBE A. WOOD
|
Director
|
February 24, 2012
|
Phoebe A. Wood
|
|
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign a severance agreement in the form stipulated by the Company, and the severance agreement has become irrevocable, within 60 days after your Termination of Service or such earlier time as the Company may determine, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign a severance agreement in the form stipulated by the Company, and the severance agreement has become irrevocable, within 60 days after your Termination of Service or such earlier time as the Company may determine, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the Determination Dates, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the Determination Dates, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign a severance agreement in the form stipulated by the Company, and the severance agreement has become irrevocable, within 60 days after your Termination of Service or such earlier time as the Company may determine, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the Determination Dates, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign a severance agreement in the form stipulated by the Company, and the severance agreement has become irrevocable, within 60 days after your Termination of Service or such earlier time as the Company may determine, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the dates specified on page 1 hereof, provided that you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign a severance agreement in the form stipulated by the Company, and the severance agreement has become irrevocable, within 60 days after your Termination of Service or such earlier time as the Company may determine, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the Determination Dates, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
(a)
|
the Determination Dates, to the extent provided under the Performance Vesting Formula, if you have not experienced a Termination of Service before such respective dates, or
|
(b)
|
your Termination of Service due to death or Disability, or
|
(c)
|
your involuntary Termination of Service, other than for Cause, Disability or unsatisfactory performance, as determined by the Head of Human Resources in his sole discretion, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company, or
|
(d)
|
immediately before a Change in Control, if this Award Agreement is not assumed, converted or replaced in connection with the transaction that constitutes the Change in Control, or
|
(e)
|
your Termination of Service during the 24-month period following a Change in Control either (i) by the Company other than for Cause or Disability, or (ii) by you for Good Reason.
|
•
|
Annual consultation with Deloitte and
|
•
|
Preparation of your tax returns during the time that you have taxes due in the United States as well as Australia;
|
(a)
|
due to personal illness or injury (sick leave); or
|
(b)
|
for the purpose of providing care or support to a member of your immediate family or household who requires your care and support because of illness or injury or an unexpected emergency affecting him or her (carer’s leave).
|
(a)
|
to spend time with a member of your immediate family or household who has an illness or injury that poses a serious threat to their life; or
|
(b)
|
in the event of the death of a member of your immediate family or household.
|
Benefit Type
|
Description of Benefit
|
Superannuation Salary Sacrifice
|
In addition to the statutory superannuation contributions made by the Company, you can elect to contribute a higher percentage of salary through your pre-tax remuneration.
|
Novated Vehicle Lease
|
Invesco provides all employees with the option to enter into a Novated Lease. A Novated Lease is a motor vehicle leasing agreement between a leasing company, the employee and the company. Please refer to the enclosed Novated Lease Information Pack for further details.
|
|
1371 Preferred Inc.
|
|
A I M Capital Management Company Limited
|
|
AIGGRE Investments YH
|
|
AIG Global Real Estate Asia Pacific Inc.
|
|
AIG Global Real Estate Investment (Asia) LLC
|
|
AIG Global Real Estate Shanghai Leasing & Management Corporation
|
|
AIG Korea Real Estate Holdings LLC
|
|
AIG Management Consultancy (Shanghai) Co., Ltd.
|
|
AIM GP Canada Inc
|
|
AMVESCAP Limited
|
|
Anglo-Scottish Amalgamated Corporation Limited
|
|
AT Planning Services, Inc.
|
|
Atlantic Trust Group, Inc.
|
|
Atlantic Wealth Holdings Limited
|
|
Atlantic Wealth Management Limited
|
|
Berry Starquest Limited
|
|
C M Investment Nominees Limited
|
|
Chancellor Citiventure 96 Partner (Cayman) Ltd
|
|
City Merchants High Yield Trust plc
|
|
City Merchants High Yield Trust plc ( In liquidation)
|
|
Coff Associates (Cayman) Limited
|
|
CPCO Associates (Cayman) Limited
|
|
Elliot Associates Limited
|
|
ELP Estates Limited
|
|
ELP Evesham Limited
|
|
ELP Properties Limited
|
|
ELP Residential Limited
|
|
ELP Sales Limited
|
|
ELP Trading Limited
|
|
Finemost Limited
|
|
GT Japan Investment Trust plc (In Liquidation)
|
|
Huaneng Capital Services Corporation Ltd.
|
|
Huaneng Invesco WLR Investment Consulting Company Ltd.
|
|
HVH Immobilien- und Beteiligungs GmbH
|
|
HVH USA, Inc.
|
|
IAS Asset I LLC
|
|
IAS Operating Partnership LP
|
|
IMC Investments I LLC
|
|
Invesco Perpetual UK Smaller Companies Investment Trust plc
|
|
INVESCO (B.V.I.) NOMINEES LIMITED
|
|
INVESCO (Cayman Islands) Ltd.
|
|
Invesco (Hyderabad) Private Limited
|
|
Invesco Administration Services Limited
|
|
Invesco Advisers, Inc.
|
|
Invesco Aim Global Holdings, Inc.
|
|
Invesco Aim Retirement Services, Inc.
|
|
Invesco Asia Trust plc
|
|
INVESCO Asset Management (Bermuda) Ltd
|
|
Invesco Asset Management (Japan) Limited
|
|
Invesco Asset Management (Schweiz) AG
|
|
Invesco Asset Management Asia Limited
|
|
Invesco Asset Management Australia (Holdings) Ltd
|
|
Invesco Asset Management Deutschland GmbH
|
|
INVESCO Asset Management Ireland Holdings Limited
|
|
INVESCO Asset Management Ireland Limited (In Liquidation)
|
|
Invesco Asset Management Limited
|
|
Invesco Asset Management Österreich GmbH
|
|
Invesco Asset Management Pacific Limited
|
|
Invesco Asset Management SA
|
|
Invesco Asset Management Singapore Ltd
|
|
Invesco Australia Limited
|
|
Invesco Canada Holdings Inc.
|
|
Invesco CE SA
|
|
INVESCO CE Service Centre SA
|
|
Invesco CE Services SA
|
|
Invesco Continental Europe Holdings SA
|
|
INVESCO Continental Smaller Companies Trust plc ( In liquidation )
|
|
INVESCO Convertible Trust plc (In Liquidation)
|
|
Invesco Distributors, Inc.
|
|
Invesco English and International Trust plc
|
|
Invesco Fund Managers Limited
|
|
INVESCO Funds Group, Inc.
|
|
INVESCO Geared Opportunities Trust plc (In Liquidation)
|
|
INVESCO Global Asset Management (Bermuda) Limited
|
|
INVESCO Global Asset Management Limited
|
|
Invesco Global Investment Funds Limited
|
|
Invesco Great Wall Fund Management Company Limited
|
|
Invesco Group Limited
|
|
Invesco Group Services, Inc.
|
|
Invesco GT Asset Management Limited
|
|
Invesco Holding Company Limited
|
|
Invesco Holding Germany GmbH
|
|
INVESCO Holding Germany Ltd & Co OHG
|
|
INVESCO Holland B.V.
|
|
Invesco Hong Kong Limited
|
|
Invesco Hungary LLC
|
|
Invesco Inc.
|
|
Invesco Inc. (amalgamated Jan 1/09 with IVZ Callco Inc.)
|
|
Invesco Income Growth Trust plc
|
|
Invesco Insurance Agency, Inc.
|
|
INVESCO International (Southern Africa) Limited
|
|
Invesco International Holdings Limited
|
|
INVESCO International Limited
|
|
Invesco Investment Services, Inc.
|
|
Invesco Investments (Bermuda) Ltd.
|
|
INVESCO ITALIA Societa di gestione del risparmio - S.p.A. (in liquidation 1.6.06)
|
|
INVESCO Japan Discovery Trust plc
|
|
Invesco Kapitalanlagegesellschaft mbH
|
|
Invesco Leveraged High Yield Fund Limited
|
|
Invesco Ltd.
|
|
Invesco Management Company Limited
|
|
INVESCO Management GmbH
|
|
Invesco Management Group, Inc.
|
|
INVESCO Management S.A.
|
|
Invesco Mortgage Capital Inc.
|
|
INVESCO National Trust Company
|
|
Invesco North American Group Limited
|
|
Invesco North American Holdings, Inc.
|
|
Invesco Pacific Group Limited
|
|
Invesco Pacific Holdings Limited
|
|
INVESCO Pacific Partner Ltd
|
|
Invesco Pension Trustees Limited
|
|
Invesco Perpetual AiM VCT plc
|
|
Invesco Perpetual European Absolute Return Trust plc
|
|
Invesco Perpetual Life Limited
|
|
Invesco Perpetual Recovery Trust 2011 plc
|
|
Invesco Perpetual Select Trust Plc
|
|
INVESCO Polska Spolka z organiczona odpowiedzialnoscia (INVESCO Polska Sp.z.o.o.)
|
|
INVESCO Powershares Capital Management Ireland Limited
|
|
Invesco PowerShares Capital Management LLC
|
|
INVESCO Private Capital Investments, Inc.
|
|
INVESCO Private Capital Verwaltung GMBH (in liquidation 25.4.07)
|
|
Invesco Private Capital, Inc.
|
|
INVESCO Properties Limited (In Liquidation)
|
|
Invesco Property Income Trust Limited
|
|
INVESCO Real Estate Germany LLC
|
|
Invesco Real Estate Germany, L.P.
|
|
Invesco Real Estate GmbH
|
|
Invesco Real Estate Limited
|
|
Invesco Real Estate Management S.a.r.l.
|
|
INVESCO Real Estate s.r.o.
|
|
Invesco Realty Asia I, Ltd
|
|
INVESCO Realty, Inc.
|
|
INVESCO Recovery Trust 2005 plc ( In Liquidation)
|
|
Invesco Savings Scheme (Nominees) Limited
|
|
Invesco Senior Secured Management, Inc.
|
|
Invesco Taiwan Limited
|
|
INVESCO Tokyo Trust plc (In Liquidation)
|
|
Invesco Trimark Dealer Inc./Courtage Invesco Trimark Inc.
|
|
Invesco Trimark Ltd./Invesco Trimark Ltée
|
|
Invesco UK Holdings Limited
|
|
Invesco UK Limited
|
|
Invesco WLR Limited
|
|
Invesco WLR Private Equity Investment Management Limited
|
|
Investment Fund Administrators Limited (In Liquidation)
|
|
IPE Ross Management Ltd
|
|
IRE (Cayman) Limited
|
|
IRE (China) Limited
|
|
IRE (Hong Kong) Limited
|
|
IRE Asia Fund I, L.P.
|
|
IRE Asia Fund II, LP
|
|
IRE Japan, Ltd
|
|
IVZ Callco Inc. (amalgamated with Invesco Inc. Jan 1/09) (continued into Canada Dec 21, 2006 and continued back into Nova Scotia Dec 27, 2006)
|
|
IVZ Distributors, Inc.
|
|
IVZ Finance Limited
|
|
IVZ Immobilien Verwaltungs GmbH
|
|
IVZ Mauritius Services Private Limited
|
|
IVZ UK Limited
|
|
IVZ, Inc.
|
|
James Bryant Limited
|
|
Jermyn Investment Co Ltd
|
|
Jermyn Investment Company Holdings Limited
|
|
Jermyn Investment Properties Limited
|
|
Keystone Investment Trust plc
|
|
PCM Properties LLC
|
|
Perpetual Holdings, Inc.
|
|
Perpetual Income and Growth Investment Trust plc
|
|
Perpetual Japanese Investment Trust plc
|
|
Perpetual Limited
|
|
Perpetual Portfolio Management Limited
|
|
Perpetual Unit Trust Management (Nominees) Limited
|
|
POCZTYLION - ARKA POWSZECHNE TOWARZYSTWO EMERYTALNE SPOLKA AKCYJNA
|
|
Real Estate Opportunities Limited
|
|
Ross CG Management LP
|
|
Ross Expansion Associates LP
|
|
Sermon Lane Nominees Limited
|
|
Sovereign G/.P. Holdings Inc
|
|
Stein Roe Investment Counsel, Inc.
|
|
Taiyo Fund Management Co. LLC
|
|
The Cayenne Trust plc
|
|
The Edinburgh Investment Trust plc
|
|
V.V. Glasgow (No.1) G.P. Limited (in liquidation)
|
|
V.V. Real Property G.P. Limited (in liquidation)
|
|
V.V. Real Property Nominees Limited (in liquidation)
|
|
V.V. Slough G.P. Limited (in liquidation)
|
|
V.V. Stockton G.P. Limited (in liquidation)
|
|
Van Kampen Investor Services Inc
|
|
Van Kampen Seed LLC
|
|
VV CR 1s.r.o.
|
|
VV Immobilien Verwaltungs GmbH
|
|
VV Immobilien Verwaltungs und Beteiligungs GmbH
|
|
VV Poland 1 sp.z.o.o.
|
|
VV USA LLC
|
|
W.L. Ross & Co. (India) LLC
|
|
W.L. Ross & Co., LLC
|
|
W.L. Ross M & T, LLC
|
|
WL Ross (India) Private Limited
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WL Ross DIP Management LLC
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WLR China Energy Associates Ltd
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WLR Euro Wagon Management Ltd
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1.
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I have reviewed this Annual Report on Form 10-K of Invesco Ltd.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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February 24, 2012
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/s/ MARTIN L. FLANAGAN
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Martin L. Flanagan
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President and Chief Executive Officer
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1.
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I have reviewed this Annual Report on Form 10-K of Invesco Ltd.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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February 24, 2012
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/s/ LOREN M. STARR
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Loren M. Starr
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Senior Managing Director and Chief Financial Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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February 24, 2012
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/s/ MARTIN L. FLANAGAN
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Martin L. Flanagan
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President and Chief Executive Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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February 24, 2012
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/s/ LOREN M. STARR
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Loren M. Starr
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Senior Managing Director and Chief Financial Officer
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