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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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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
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Accelerated filer
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Page
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significant fluctuations in the performance of debt and equity markets worldwide;
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any inability to adjust our expenses quickly enough to match significant deterioration in markets;
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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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the investment performance of our investment products;
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variations in demand for our investment products or services, including termination or non-renewal of our investment management agreements;
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the effect of economic conditions and fluctuations in interest rates in the U.S. or globally;
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adverse changes in laws or regulations, adverse results in litigation and any other regulatory or other proceedings, governmental investigations, and enforcement actions;
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our ability to attract and retain key personnel, including investment management professionals;
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harm to our reputation;
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our ability to comply with client contractual requirements and/or investment guidelines despite preventative compliance procedures and controls;
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competitive pressures in the investment management business which may force us to reduce fees we earn;
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our ability to develop, introduce and support new investment products and services;
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the effect of consolidation in the investment management business;
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the effect of non-performance by our counterparties;
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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 product sales, cost savings or synergies from such acquisitions;
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our ability to implement our ongoing company-wide transformational initiatives;
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our ability to access the capital markets in a timely manner;
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our debt and the limitations imposed by our credit facility;
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limitations or restrictions on access to distribution channels for our products;
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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, cyber-attacks or acts of fraud;
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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 effect of failures by third party service providers and other key vendors to fulfill their obligations;
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the effect of political, economic or social instability in or involving countries in which we invest or do business (including the effect of terrorist attacks, war and other hostilities);
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exchange rate fluctuations, especially as against the U.S. Dollar;
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impairment of goodwill and other intangible assets; and
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enactment of adverse federal, state 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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Achieve strong, long-term investment performance
across distinct investment capabilities with clearly articulated investment philosophies and processes, aligned with client needs;
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Be instrumental to our clients' success
by delivering our distinctive investment capabilities worldwide to meet their needs;
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Harness the power of our global platform
by continuously improving execution effectiveness to enhance quality and productivity, and allocating our resources to the opportunities that will best benefit clients and our business; and
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Perpetuate a high-performance organization
by driving greater transparency, accountability, fact-based decision making and execution at all levels.
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Delivered strong, long-term investment performance across our global franchise, with 79% and 85% of measured actively managed ranked assets in the top half of peer groups* on a three- and five-year basis, respectively, as of December 31, 2015;
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Continued to achieve strong flows from our multi-asset Global Targeted Return (GTR) capability based on strong performance relative to peers and from our efforts to expand its availability globally. Originally launched in the U.K., the strategy is now offered in the U.S., Europe and Asia attracting a wide variety of institutional clients globally. AUM reached $11 billion in 2015, up $8 billion over the prior year;
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Further enhanced our fixed income product suite, developing talent and strengthening our reputation in the market place, which contributed to more than $12.5 billion in long-term funded wins;
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Invested in our institutional business - refining our global strategy, bringing on additional highly regarded talent and more effectively aligning ourselves to opportunities in the market. We are seeing some early successes from this work - institutional flows during the fourth quarter were among the strongest in the past several quarters in spite of volatile markets;
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Invesco PowerShares completed its acquisition of Deutsche Bank’s U.S. commodity ETF business;
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Announced the intent to acquire the remaining 51% of Religare Invesco Asset Management, our joint venture in India;
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Saw continued success from our solutions strategy, which brings together the full capabilities of the firm to help clients meet their investment objectives. One outcome of this strategy was winning the Rhode Island 529 mandate of $7.2 billion that is expected to fund in July 2016;
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Continued to innovate and expand the range of alternative products to meet global client demand with new retail and institutional capabilities that leverage our strong teams and strategies. As examples, we launched the Global Direct Real Estate Trust in Canada; Unconstrained Bond Fund in EMEA; and Invesco Balanced Risk Allocation Feeder Fund in Japan;
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Demonstrated strong employee engagement across the firm, with Invesco being named as one of the best places to work in money management by Pensions & Investments magazine; and
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Improved our financial flexibility with the issuance of $500 million of new long-term debt and the amendment and extension of our credit facility.
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*
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As of
December 31, 2015
, 79% and 85% of ranked assets were performing top half of peer groups on a 3 and 5-year basis. Of total Invesco AUM,
58%
were ranked at year-end. See 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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Clients are demanding more from investment managers. While investment performance remains paramount, client engagement and value-added services increasingly differentiate managers. Invesco is working to enhance the client's user experience through digital marketing (web, mobile, social) and improved service.
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Facing the likelihood of sustained low interest rates, investors are seeking outcome-orientated investment solutions that provide income and manage volatility. The building out of Invesco Solutions is among the firm's top priorities.
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Investors are continuing to shift to alternative, passive, and smart beta strategies. As a consequence, core equities and fixed income solutions are declining as a share of global AUM. Investment managers are under pressure to justify fees and value. Invesco PowerShares remains the leader in smart beta ETFs and Invesco has a strong lineup of alternative and multi-asset strategies supported by ongoing product development.
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Regulatory activity remains at increased levels since the 2008 - 2009 financial crisis and is influencing competitive dynamics. Increased regulatory scrutiny of managers has focused on many areas including transparency /unbundling of fees, inducements, conflicts of interest, capital, liquidity, solvency, operational risk management, controls and compensation. Invesco continued to pro-actively work with regulators around the world. Efforts to further modernize and strengthen our operating platform will enhance our ability to compete effectively across markets while complying with the variety of applicable regulatory regimes.
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Although the developed markets in the U.S. and Europe are currently the two largest markets for financial assets by a wide margin, other key emerging markets in the world, such as China and India, are positioned for future growth despite near-term headwinds. As these population-heavy markets mature, we believe 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 retirement savings schemes also differ substantially among countries. We believe firms such as Invesco, with diversified investment capabilities and product types, are best positioned to meet clients' needs in this global competitive landscape. Invesco has a meaningful and expanding market presence in many of the world's most attractive regions, including the U.S., Canada, Western Europe and the U.K., the Middle East and Asia-Pacific. We believe our strong and growing presence in established and emerging markets provides significant long-term growth potential for our business.
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Technology advances are impacting core elements of the investment management industry which lags other industries in its use of technology. Clients increasingly seek to interact digitally with their investment portfolios. This is leading to established managers investing in and/or acquiring "robo" platforms. As the investment management business becomes more complex, automation will become increasingly important to serve clients effectively and efficiently. Invesco is leveraging technology in all aspects of its business and exploring opportunities to work with third-party technology firms to enhance our clients' investment experience.
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Money Market
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Balanced
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Equity
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Fixed Income
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Alternatives
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●Cash Plus
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●Balanced Risk
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●Emerging Markets
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●Convertibles
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●Absolute Return
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●Government/Treasury
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●Global
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●International/Global
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●Core/Core Plus
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●Commodities
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●Prime
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● Single Country
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●Large Cap Core
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●Emerging Markets
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●Currencies
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●Taxable
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●Target Date
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●Large Cap Growth
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●Enhanced Cash
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●Financial Structures
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●Tax-Free
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●Target Risk
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●Large Cap Value
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●Government Bonds
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●Global Macro
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●Custom Solutions
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●Traditional Balanced
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●Low Volatility
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●High-Yield Bonds
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●Long/Short Equity
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●Custom Solutions
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●Mid Cap Core
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●Intermediate Term
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●Managed Futures
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●Mid Cap Growth
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●International/Global
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●Multi-Alternatives
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●Mid Cap Value
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●Investment Grade Credit
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●Private Capital - Direct
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●Regional/Single Country
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●Multi-Sector
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●Private Capital - Fund of Funds
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●Sector Funds
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●Municipal Bonds
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●Private Direct Real Estate
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●Small Cap Core
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●Passive/Enhanced
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●Public Real Estate Securities
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●Small Cap Growth
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●Short Term
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●Senior Secured Loans
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●Small Cap Value
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●Stable Value
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●Custom Solutions
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●Custom Solutions
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●Structured Securities
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●Custom Solutions
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Retail
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Institutional
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● Closed-end Mutual Funds
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● Collective Trust Funds
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● Exchange-traded Funds (ETF)
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● Exchange-traded Funds (ETF)
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● Individual Savings Accounts
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● Institutional Separate Accounts
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● Investment Companies with Variable Capital (ICVC)
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● Open-end Mutual Funds
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● Investment Trusts
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● Private Capital Funds
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● Open-end Mutual Funds
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● Separately Managed Accounts (SMA)
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● Unit Investment Trusts (UIT)
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● Variable Insurance Funds
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By Client Domicile
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($ in billions)
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Total
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1-Yr Change
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c
U.S.
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510.7
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(4.0
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)%
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c
Canada
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21.7
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(15.9
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)%
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c
U.K.
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104.2
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(0.9
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)%
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c
Continental Europe
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75.4
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6.0
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%
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c
Asia
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63.6
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9.1
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%
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Total
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775.6
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By Asset Class
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($ in billions)
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Total
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1-Yr Change
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c
Equity
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370.9
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(3.5
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)%
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c
Fixed Income
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187.9
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3.5
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%
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c
Balanced
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48.1
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(4.9
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)%
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c
Money Market
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64.6
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(15.6
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)%
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c
Alternatives
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104.1
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4.8
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%
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Total
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775.6
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Investment risk oversight is supported by the Global Performance Measurement and Risk group, which provides senior management and the Board with insight into core investment risks.
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Business risk oversight is supported by the Corporate Risk Management Committee, which facilitates a focus on strategic, operational and other key business risks, and related committees.
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In the event of extreme circumstances, including economic, political, or business crises, such as a widespread systemic failure or disruptions in the global financial system or failures of firms that have significant obligations as counterparties on financial instruments, we may suffer significant declines in AUM and severe liquidity or valuation problems in managed 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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In addition to the impact of the market volatility on client portfolios, illiquidity and/or volatility of the global fixed income and/or equity markets could negatively affect our ability to manage client inflows and outflows or to timely meet client redemption requests.
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Our money market funds have always maintained a net asset value (NAV) of $1.00 per share; however, we do not guarantee such level. Market conditions could lead to severe liquidity issues in money market products, which could affect their NAVs.
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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 AUM, loss of shareholder confidence and reputational harm. In the U.S., regulations requiring a variable (“floating”) NAV for institutional money market funds will become effective in 2016.
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Even if central bank, legislative or regulatory initiatives or other efforts continue to stabilize 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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Expanded regulation over investment management firms.
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New or increased capital requirements and related regulation.
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Changes in the U.S. to the regulation of money market funds, including new requirements effective in 2016 for a floating net asset value (NAV) for certain institutional money market funds and requirements for imposing liquidity fees and redemption limits or “gates” for all money market funds (except Government funds) when fund liquidity is depleted. These regulatory reforms will necessitate structural and operational changes to Invesco’s U.S. money market fund products.
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Additional change to the regulation of money market funds in the EU requiring capital buffers.
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Limitations on holdings of certain commodities under proposed regulations of the CFTC which could result in capacity constraints for our balanced risk products and other products that employ commodities as part of their investment strategy.
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The U.S. Department of Labor (“DOL”) has reintroduced regulations that, if adopted, would treat as fiduciaries any person who provides investment advice or recommendations to employee benefit plans, plan fiduciaries, plan participants, plan beneficiaries, Individual Retirement Accounts (IRAs) or IRA owners. The proposal has wide-ranging consequences for Invesco and our U.S. distribution partners and product line. Under the new rules, firms and individuals who recommend financial products to retirement investors would be required to act in the best interest of the investor and, to receive variable compensation, would be required to enter into a contract with clients and produce complex disclosure documents intended to highlight financial conflicts of interest that may arise from the compensation the financial adviser receives from firms like Invesco. Invesco submitted a comment letter on these proposals on July 21, 2015, with a focus on the unintended consequences of the proposal and ways in which the DOL can improve upon the proposal by expanding carve outs for investment education and sales activity and reducing the burdensome contract and disclosure requirements. We expect the final regulations to be promulgated in the first half of 2016.
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Other 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, and may propose other regulatory changes impacting distribution of investment funds. Invesco believes these proposals could increase operational and compliance costs. The EU has implemented the Alternative Investment Fund Manager Directive ("AIFMD"); implementing legislation in member states has, among other elements, imposed restrictions on the marketing and sale within the EU of private equity and other alternative investment funds sponsored by non-EU managers. Various regulators promulgated or are considering other new disclosure or 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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The Markets in Financial Instruments Directive II (“MiFID II”) in the EU seeks to promote a single market for wholesale and retail transactions in financial instruments. MiFID II addresses the conduct of business rules for intermediaries providing investment services and the effective, efficient and safe operation of financial markets. Key elements of MiFID II are the extent to which retrocessions may be paid and the use of trading commissions to fund research.
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An increased focus on liquidity in fixed income funds.
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Increased regulatory scrutiny on operations of private equity funds.
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Guidelines regarding the structure and components of fund manager compensation, including under various EU Directives.
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New requirements pertaining to the trading of securities and other financial instruments, such as swaps and other derivatives, including certain provisions of the Dodd-Frank Act and European Market Infrastructure Regulation; these include a significant amount of new reporting requirements, designated trading venues, mandated central clearing arrangements, restrictions on proprietary trading by certain financial institutions, other conduct requirements and potentially new taxes or similar fees.
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Broadening of the reach of regulatory bodies into areas where they have not been previously (e.g. the required registration of hedge funds and other private funds with the SEC).
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Heightened regulatory examinations and inspections, including enforcement reviews, and a more aggressive posture regarding commencing enforcement proceedings resulting in fines, penalties and additional remedial activities to firms and to individuals. Without limiting the generality of the foregoing, regulators in the United States and the United Kingdom have taken and can be expected to continue to take a more aggressive posture on bringing enforcement proceedings.
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Enhanced licensing and qualification requirements for key personnel.
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Other additional rules and regulations and disclosure requirements. Certain provisions impose additional disclosure burdens on public companies. 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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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, the U.K. Bribery Act and anti-money-laundering laws and regulations.
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Regulations promulgated to address perceptions that the asset management industry, or certain of its entities or activities, pose systematic risks to the financial system.
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Other changes impacting the identity or the organizational structure of regulators with supervisory authority over Invesco.
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Regulations promulgated to address risks of fraud, malfeasance or other adverse consequences stemming from cyber attacks.
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we are prohibited from engaging, under certain circumstances, in a business combination (as defined in our Bye-Laws) with any interested shareholder (as defined in our Bye-Laws) for three years following the date that the shareholder became an interested shareholder;
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our board of directors, without further shareholder action, is permitted by our Bye-Laws to issue preference shares, in one or more series, and determine by resolution any designations, preferences, qualifications, privileges, limitations, restrictions, or special or relative rights of an additional series. The rights of preferred shareholders may supersede the rights of common shareholders;
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our board of directors is classified into three classes with the election years of the members of each class staggered such that the members of only one of the three classes are elected each year. (In May 2014, our shareholders have approved a phased-in declassification of our board of directors, which will be complete by the 2017 Annual General Meeting of Shareholders.);
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shareholders may only remove directors for “cause” (defined in our Bye-laws to mean willful misconduct or gross negligence which is materially injurious to the company, fraud or embezzlement, or a conviction of, or a plea of “guilty” or “no contest” to, a felony);
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our board of directors is authorized to expand its size and fill vacancies; and
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shareholders cannot act by written consent unless the consent is unanimous.
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Invesco Ltd.
Common Shares
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High
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Low
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Dividends Declared*
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2015
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Fourth Quarter
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$34.35
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$30.39
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$0.2700
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Third Quarter
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$38.99
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$30.82
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$0.2700
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Second Quarter
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$41.73
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$37.40
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$0.2700
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First Quarter
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$41.85
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$35.93
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$0.2500
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2014
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Fourth Quarter
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$41.28
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$35.56
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$0.2500
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Third Quarter
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$41.25
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$37.54
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$0.2500
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Second Quarter
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$38.20
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$34.09
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$0.2500
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First Quarter
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$37.00
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$31.77
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$0.2250
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Note:
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The above chart is the average annual total return for the period from December 31, 2010 through
December 31, 2015
. Peer Index includes Affiliated Managers Group, AB, 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, T. Rowe Price, and Waddell & Reed.
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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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Approximate Dollar
Value of Shares that
May Yet Be Purchased Under the Plans or Programs (2) (millions) |
||||||
October 1 - 31, 2015
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55,742
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$31.51
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—
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$892.8
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November 1 - 30, 2015
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4,948,388
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$33.15
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4,941,924
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$729.0
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December 1 - 31, 2015
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1,647,187
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$32.92
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1,544,663
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$678.0
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6,651,317
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6,486,587
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(1)
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An aggregate of
164,730
shares were surrendered to us by Invesco employees to satisfy tax withholding obligations in connection with the vesting of equity awards during the three months ended
December 31, 2015
.
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(2)
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In October 2013, our board of directors authorized a $1.5 billion share repurchase program of our common shares with no stated expiration date. As of
December 31, 2015
,
$678.0 million
remained authorized under this plan.
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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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2015
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2014
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2013
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2012
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2011
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Operating Data
(1)
:
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|||||
Operating revenues
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5,122.9
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5,147.1
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4,644.6
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4,050.4
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3,982.3
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Net revenues
(2)
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3,643.2
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3,608.3
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3,252.0
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2,836.0
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2,791.6
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Operating income
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1,358.4
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1,276.9
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1,120.2
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842.6
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882.1
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Adjusted operating income
(3)
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1,493.7
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1,495.0
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1,292.1
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1,012.1
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1,046.2
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Operating margin
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26.5
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%
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24.8
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%
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24.1
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%
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20.8
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%
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22.2
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%
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Adjusted operating margin
(3)
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41.0
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%
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41.4
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%
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39.7
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%
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35.7
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%
|
|
37.5
|
%
|
Net income attributable to Invesco Ltd.
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
|
677.1
|
|
|
729.7
|
|
Adjusted net income attributable to Invesco Ltd.
(4)
|
1,048.7
|
|
|
1,094.8
|
|
|
953.3
|
|
|
748.6
|
|
|
759.1
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|||||
-basic
|
2.26
|
|
|
2.27
|
|
|
2.10
|
|
|
1.50
|
|
|
1.58
|
|
-diluted
|
2.26
|
|
|
2.27
|
|
|
2.10
|
|
|
1.49
|
|
|
1.57
|
|
Adjusted diluted EPS
(1,4)
|
2.44
|
|
|
2.51
|
|
|
2.13
|
|
|
1.65
|
|
|
1.63
|
|
Dividends declared per share
|
1.0600
|
|
|
0.9750
|
|
|
0.8475
|
|
|
0.6400
|
|
|
0.4775
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
25,073.2
|
|
|
20,450.0
|
|
|
19,256.8
|
|
|
17,487.2
|
|
|
19,345.9
|
|
Long-term debt
|
2,072.8
|
|
|
1,576.8
|
|
|
1,574.9
|
|
|
1,180.8
|
|
|
1,283.6
|
|
Debt of consolidated investment products (CIP)
|
5,437.0
|
|
|
5,149.6
|
|
|
4,181.7
|
|
|
3,899.4
|
|
|
5,512.9
|
|
Total equity attributable to Invesco Ltd.
|
7,885.3
|
|
|
8,326.0
|
|
|
8,392.6
|
|
|
8,316.8
|
|
|
8,119.1
|
|
Total permanent equity
|
8,695.7
|
|
|
9,119.8
|
|
|
8,977.3
|
|
|
9,049.0
|
|
|
9,137.6
|
|
Other Data
(1)
:
|
|
|
|
|
|
|
|
|
|
|||||
Ending AUM (in billions)
|
775.6
|
|
|
792.4
|
|
|
778.7
|
|
|
667.4
|
|
|
607.3
|
|
Average AUM (in billions)
|
794.7
|
|
|
790.3
|
|
|
725.6
|
|
|
645.3
|
|
|
617.8
|
|
Headcount
|
6,490
|
|
|
6,264
|
|
|
5,932
|
|
|
5,889
|
|
|
5,917
|
|
(1)
|
The company completed the sale of Atlantic Trust on December 31, 2013. The results of Atlantic Trust have been reflected as discontinued operations. Amounts presented represent continuing operations and exclude Atlantic Trust, with the exception
|
(2)
|
Net revenues is a non-GAAP financial measure. See Item 7, “Summary Operating Information,” footnote 2, for the definition of this measure and the related reconciliation reference.
|
(3)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See Item 7, “Summary Operating Information,” footnote 3, for the definition of these measures and the related reconciliation reference.
|
(4)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. See Item 7, “Summary Operating Information,” footnote 4, for the definition of these measures and the related reconciliation reference.
|
•
|
Results of Operations (years ended
December 31, 2015
compared to
December 31, 2014
compared to
December 31, 2013
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
$ in millions, other than per share amounts, operating margins, ratios and AUM
|
Year ended December 31,
|
|||||||
U.S. GAAP Financial Measures Summary
(1)
|
2015
|
|
2014
|
|
2013
|
|||
Operating revenues
|
5,122.9
|
|
|
5,147.1
|
|
|
4,644.6
|
|
Operating income
|
1,358.4
|
|
|
1,276.9
|
|
|
1,120.2
|
|
Operating margin
|
26.5
|
%
|
|
24.8
|
%
|
|
24.1
|
%
|
Net income attributable to Invesco Ltd.
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
Diluted EPS
|
2.26
|
|
|
2.27
|
|
|
2.10
|
|
Debt/equity ratio including CIP (%)
|
86.4
|
%
|
|
73.8
|
%
|
|
64.1
|
%
|
|
|
|
|
|
|
|||
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
|||
Net revenues
(2)
|
3,643.2
|
|
|
3,608.3
|
|
|
3,252.0
|
|
Adjusted operating income
(3)
|
1,493.7
|
|
|
1,495.0
|
|
|
1,292.1
|
|
Adjusted operating margin
(3)
|
41.0
|
%
|
|
41.4
|
%
|
|
39.7
|
%
|
Adjusted net income attributable to Invesco Ltd.
(4)
|
1,048.7
|
|
|
1,094.8
|
|
|
953.3
|
|
Adjusted diluted EPS
(4)
|
2.44
|
|
|
2.51
|
|
|
2.13
|
|
Debt/equity ratio excluding CIP (%)
(5)
|
26.1
|
%
|
|
18.9
|
%
|
|
19.0
|
%
|
|
|
|
|
|
|
|||
Assets Under Management
(1)
|
|
|
|
|
|
|||
Ending AUM (billions)
|
775.6
|
|
|
792.4
|
|
|
778.7
|
|
Average AUM (billions)
|
794.7
|
|
|
790.3
|
|
|
725.6
|
|
(1)
|
On December 31, 2013, the company completed the sale of Atlantic Trust. The company has adopted a discontinued operations presentation for Atlantic Trust. Amounts presented represent continuing operations and exclude Atlantic Trust, with the exception of net income attributable to Invesco Ltd. and diluted earnings per share.
|
(2)
|
Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus our proportional share of the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP, less other revenue recorded by CIP, plus other reconciling items. See "Schedule of Non-GAAP Information" for the reconciliation of operating revenues to net revenues.
|
(3)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, acquisition/disposition related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income.
|
(4)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the net income of CIP, add back acquisition/disposition related adjustments, the net income impact of deferred compensation plans and other reconciling items. Adjustments made to net income attributable to Invesco Ltd. are tax-effected in arriving at adjusted net income attributable to Invesco Ltd.. By calculation, adjusted diluted EPS is adjusted net income attributable to Invesco Ltd. divided by the weighted average number of shares outstanding (for diluted EPS). See "Schedule of Non-GAAP Information," for the reconciliation of net income attributable to Invesco Ltd. to adjusted net income attributable to Invesco Ltd..
|
(5)
|
The debt-to-equity ratio excluding CIP is a non-GAAP financial measure. See the "Liquidity and Capital Resources" section for a recalculation of this ratio and other important disclosures.
|
|
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
|
12
|
%
|
9
|
%
|
32
|
%
|
|
4
|
%
|
5
|
%
|
33
|
%
|
U.S. Growth
|
100
|
%
|
95
|
%
|
30
|
%
|
|
51
|
%
|
95
|
%
|
34
|
%
|
U.S. Value
|
46
|
%
|
52
|
%
|
31
|
%
|
|
46
|
%
|
52
|
%
|
98
|
%
|
Sector Funds
|
24
|
%
|
60
|
%
|
76
|
%
|
|
25
|
%
|
9
|
%
|
12
|
%
|
U.K.
|
100
|
%
|
100
|
%
|
100
|
%
|
|
91
|
%
|
100
|
%
|
100
|
%
|
Canadian
|
27
|
%
|
27
|
%
|
56
|
%
|
|
21
|
%
|
37
|
%
|
46
|
%
|
Asian
|
75
|
%
|
98
|
%
|
82
|
%
|
|
72
|
%
|
74
|
%
|
72
|
%
|
Continental European
|
98
|
%
|
98
|
%
|
100
|
%
|
|
58
|
%
|
99
|
%
|
95
|
%
|
Global
|
85
|
%
|
70
|
%
|
87
|
%
|
|
83
|
%
|
83
|
%
|
93
|
%
|
Global Ex U.S. and Emerging Markets
|
8
|
%
|
90
|
%
|
98
|
%
|
|
2
|
%
|
90
|
%
|
98
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
89
|
%
|
70
|
%
|
70
|
%
|
|
91
|
%
|
97
|
%
|
97
|
%
|
U.S. Fixed Income
|
96
|
%
|
92
|
%
|
93
|
%
|
|
93
|
%
|
84
|
%
|
97
|
%
|
Global Fixed Income
|
94
|
%
|
93
|
%
|
97
|
%
|
|
62
|
%
|
92
|
%
|
68
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
76
|
%
|
65
|
%
|
71
|
%
|
|
34
|
%
|
45
|
%
|
64
|
%
|
Balanced
|
61
|
%
|
40
|
%
|
44
|
%
|
|
52
|
%
|
92
|
%
|
100
|
%
|
(1)
|
AUM measured in the one-, three-, and five-year peer group rankings represents
58%
,
57%
, and
57%
of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents
71%
,
69%
, and
67%
of total Invesco AUM, respectively, as of
December 31, 2015
. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and are asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each Global Investment Performance Standard (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 fund-of-funds with component funds managed by Invesco, stable value building block funds and CLOs. Certain 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.
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
|||||||||
January 1
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
|
778.7
|
|
|
639.0
|
|
|
139.7
|
|
|
667.4
|
|
|
553.4
|
|
|
114.0
|
|
Long-term inflows
|
189.1
|
|
|
153.6
|
|
|
35.5
|
|
|
183.1
|
|
|
150.3
|
|
|
32.8
|
|
|
179.6
|
|
|
137.0
|
|
|
42.6
|
|
Long-term outflows
|
(172.9
|
)
|
|
(139.5
|
)
|
|
(33.4
|
)
|
|
(175.0
|
)
|
|
(148.2
|
)
|
|
(26.8
|
)
|
|
(157.9
|
)
|
|
(123.9
|
)
|
|
(34.0
|
)
|
Long-term net flows
|
16.2
|
|
|
14.1
|
|
|
2.1
|
|
|
8.1
|
|
|
2.1
|
|
|
6.0
|
|
|
21.7
|
|
|
13.1
|
|
|
8.6
|
|
Net flows in Invesco Powershares QQQ fund
|
(1.8
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
(10.7
|
)
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
(12.3
|
)
|
|
0.4
|
|
|
(5.8
|
)
|
|
(5.8
|
)
|
|
—
|
|
|
9.0
|
|
|
9.0
|
|
|
—
|
|
Total net flows
|
2.5
|
|
|
1.8
|
|
|
0.7
|
|
|
(8.4
|
)
|
|
(3.7
|
)
|
|
(4.7
|
)
|
|
34.4
|
|
|
22.1
|
|
|
12.3
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
(0.3
|
)
|
|
(2.3
|
)
|
|
34.7
|
|
|
27.9
|
|
|
6.8
|
|
|
78.8
|
|
|
64.5
|
|
|
14.3
|
|
Acquisitions/dispositions, net
(4)
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(16.0
|
)
|
|
(16.0
|
)
|
|
—
|
|
|
(12.6
|
)
|
|
(12.2
|
)
|
|
(0.4
|
)
|
|
(1.9
|
)
|
|
(1.0
|
)
|
|
(0.9
|
)
|
December 31
|
775.6
|
|
|
636.5
|
|
|
139.1
|
|
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
|
778.7
|
|
|
639.0
|
|
|
139.7
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Average long-term AUM
|
688.7
|
|
|
587.5
|
|
|
101.2
|
|
|
673.5
|
|
|
574.4
|
|
|
99.1
|
|
|
613.7
|
|
|
523.3
|
|
|
90.4
|
|
Average AUM
|
794.7
|
|
|
653.6
|
|
|
141.1
|
|
|
790.3
|
|
|
647.5
|
|
|
142.8
|
|
|
725.6
|
|
|
598.9
|
|
|
126.7
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross revenue yield on AUM
(2)
|
65.0
|
|
|
75.9
|
|
|
14.5
|
|
|
65.5
|
|
|
77.2
|
|
|
13.0
|
|
|
64.4
|
|
|
75.6
|
|
|
11.6
|
|
Gross revenue yield on AUM before performance fees
(2)
|
63.9
|
|
|
74.6
|
|
|
14.5
|
|
|
64.8
|
|
|
76.3
|
|
|
13.0
|
|
|
63.6
|
|
|
74.7
|
|
|
11.6
|
|
Net revenue yield on AUM
(3)
|
45.8
|
|
|
52.6
|
|
|
14.5
|
|
|
45.7
|
|
|
52.9
|
|
|
13.0
|
|
|
44.8
|
|
|
51.8
|
|
|
11.6
|
|
Net revenue yield on AUM before performance fees
(3)
|
44.6
|
|
|
51.0
|
|
|
14.5
|
|
|
44.8
|
|
|
51.8
|
|
|
13.0
|
|
|
43.9
|
|
|
50.7
|
|
|
11.6
|
|
(1)
|
On December 31, 2013, the company completed the sale of Atlantic Trust. All AUM amounts quoted in the tables exclude the AUM of the discontinued operations, Atlantic Trust.
|
(2)
|
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
2015
for our JVs in China was
$6.1 billion
(
2014
:
$4.9 billion
,
2013
:
$4.0 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 net income of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Consolidated Statements of Income. Additionally, the numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Therefore, management does not consider the gross revenue yield measure to be representative of the company's true effective fee rate from AUM.
|
(3)
|
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.
|
(4)
|
Dispositions during 2015 resulted in a $0.7 billion decrease in AUM representing exchange traded notes that did not transfer over as part of the agreement with Deutsche Bank to transition the investment management of the PowerShares DB suite of U.S. commodity exchange traded funds to Invesco.
|
Foreign Exchange Rates
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
|||
Pound Sterling ($ per £)
|
1.474
|
|
|
1.559
|
|
|
1.655
|
|
Canadian Dollar (CAD per $)
|
1.389
|
|
|
1.158
|
|
|
1.063
|
|
Japan (¥ per $)
|
120.275
|
|
|
119.880
|
|
|
105.080
|
|
Euro ($ per Euro)
|
1.086
|
|
|
1.210
|
|
|
1.378
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2014
|
792.4
|
|
|
532.5
|
|
|
259.9
|
|
Long-term inflows
|
189.1
|
|
|
139.1
|
|
|
50.0
|
|
Long-term outflows
|
(172.9
|
)
|
|
(136.3
|
)
|
|
(36.6
|
)
|
Long-term net flows
|
16.2
|
|
|
2.8
|
|
|
13.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
—
|
|
|
(11.9
|
)
|
Total net flows
|
2.5
|
|
|
1.0
|
|
|
1.5
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
(4.7
|
)
|
|
2.1
|
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
(16.0
|
)
|
|
(13.3
|
)
|
|
(2.7
|
)
|
December 31, 2015
|
775.6
|
|
|
514.8
|
|
|
260.8
|
|
|
|
|
|
|
|
|||
December 31, 2013
|
778.7
|
|
|
519.6
|
|
|
259.1
|
|
Long-term inflows
|
183.1
|
|
|
146.4
|
|
|
36.7
|
|
Long-term outflows
|
(175.0
|
)
|
|
(141.4
|
)
|
|
(33.6
|
)
|
Long-term net flows
|
8.1
|
|
|
5.0
|
|
|
3.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
—
|
|
|
(5.8
|
)
|
Total net flows
|
(8.4
|
)
|
|
(5.7
|
)
|
|
(2.7
|
)
|
Market gains and losses/reinvestment
|
34.7
|
|
|
27.3
|
|
|
7.4
|
|
Foreign currency translation
|
(12.6
|
)
|
|
(8.7
|
)
|
|
(3.9
|
)
|
December 31, 2014
|
792.4
|
|
|
532.5
|
|
|
259.9
|
|
|
|
|
|
|
|
|||
December 31, 2012
|
667.4
|
|
|
425.8
|
|
|
241.6
|
|
Long-term inflows
|
179.6
|
|
|
145.2
|
|
|
34.4
|
|
Long-term outflows
|
(157.9
|
)
|
|
(123.8
|
)
|
|
(34.1
|
)
|
Long-term net flows
|
21.7
|
|
|
21.4
|
|
|
0.3
|
|
Net flows in Invesco PowerShares QQQ fund
|
3.7
|
|
|
3.7
|
|
|
—
|
|
Net flows in institutional money market funds
|
9.0
|
|
|
—
|
|
|
9.0
|
|
Total net flows
|
34.4
|
|
|
25.1
|
|
|
9.3
|
|
Market gains and losses/reinvestment
|
78.8
|
|
|
68.1
|
|
|
10.7
|
|
Foreign currency translation
|
(1.9
|
)
|
|
0.6
|
|
|
(2.5
|
)
|
December 31, 2013
|
778.7
|
|
|
519.6
|
|
|
259.1
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
Long-term inflows
|
35.5
|
|
|
32.3
|
|
|
3.2
|
|
Long-term outflows
|
(33.4
|
)
|
|
(29.4
|
)
|
|
(4.0
|
)
|
Long-term net flows
|
2.1
|
|
|
2.9
|
|
|
(0.8
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Total net flows
|
0.7
|
|
|
1.1
|
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
(2.3
|
)
|
|
(1.4
|
)
|
|
(0.9
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2015
|
139.1
|
|
|
118.7
|
|
|
20.4
|
|
|
|
|
|
|
|
|||
December 31, 2013
|
139.7
|
|
|
118.2
|
|
|
21.5
|
|
Long-term inflows
|
32.8
|
|
|
27.7
|
|
|
5.1
|
|
Long-term outflows
|
(26.8
|
)
|
|
(22.2
|
)
|
|
(4.6
|
)
|
Long-term net flows
|
6.0
|
|
|
5.5
|
|
|
0.5
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(5.2
|
)
|
|
0.5
|
|
Market gains and losses/reinvestment
|
6.8
|
|
|
6.7
|
|
|
0.1
|
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
|
|
|
|
|
|
|||
December 31, 2012
|
114.0
|
|
|
91.2
|
|
|
22.8
|
|
Long-term inflows
|
42.6
|
|
|
36.7
|
|
|
5.9
|
|
Long-term outflows
|
(34.0
|
)
|
|
(27.0
|
)
|
|
(7.0
|
)
|
Long-term net flows
|
8.6
|
|
|
9.7
|
|
|
(1.1
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
3.7
|
|
|
3.7
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
12.3
|
|
|
13.4
|
|
|
(1.1
|
)
|
Market gains and losses/reinvestment
|
14.3
|
|
|
13.6
|
|
|
0.7
|
|
Foreign currency translation
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
December 31, 2013
|
139.7
|
|
|
118.2
|
|
|
21.5
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(4)
|
||||||
December 31, 2014
|
792.4
|
|
|
384.4
|
|
|
181.6
|
|
|
50.6
|
|
|
76.5
|
|
|
99.3
|
|
Long-term inflows
|
189.1
|
|
|
89.2
|
|
|
45.5
|
|
|
16.1
|
|
|
3.7
|
|
|
34.6
|
|
Long-term outflows
|
(172.9
|
)
|
|
(94.5
|
)
|
|
(35.2
|
)
|
|
(14.7
|
)
|
|
(3.9
|
)
|
|
(24.6
|
)
|
Long-term net flows
|
16.2
|
|
|
(5.3
|
)
|
|
10.3
|
|
|
1.4
|
|
|
(0.2
|
)
|
|
10.0
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.9
|
)
|
|
—
|
|
Total net flows
|
2.5
|
|
|
(7.1
|
)
|
|
10.3
|
|
|
1.4
|
|
|
(12.1
|
)
|
|
10.0
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
2.1
|
|
|
(1.4
|
)
|
|
(0.4
|
)
|
|
0.2
|
|
|
(3.1
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
(16.0
|
)
|
|
(8.5
|
)
|
|
(2.6
|
)
|
|
(3.5
|
)
|
|
—
|
|
|
(1.4
|
)
|
December 31, 2015
|
775.6
|
|
|
370.9
|
|
|
187.9
|
|
|
48.1
|
|
|
64.6
|
|
(5)
|
104.1
|
|
Average AUM
|
794.7
|
|
|
386.6
|
|
|
185.6
|
|
|
51.2
|
|
|
70.7
|
|
|
100.6
|
|
% of total average AUM
|
100.0
|
%
|
|
48.6
|
%
|
|
23.4
|
%
|
|
6.4
|
%
|
|
8.9
|
%
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
778.7
|
|
|
383.1
|
|
|
171.7
|
|
|
53.3
|
|
|
82.7
|
|
|
87.9
|
|
Long-term inflows
|
183.1
|
|
|
92.9
|
|
|
37.8
|
|
|
17.0
|
|
|
3.6
|
|
|
31.8
|
|
Long-term outflows
|
(175.0
|
)
|
|
(99.6
|
)
|
|
(30.5
|
)
|
|
(19.1
|
)
|
|
(3.8
|
)
|
|
(22.0
|
)
|
Long-term net flows
|
8.1
|
|
|
(6.7
|
)
|
|
7.3
|
|
|
(2.1
|
)
|
|
(0.2
|
)
|
|
9.8
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Total net flows
|
(8.4
|
)
|
|
(17.4
|
)
|
|
7.3
|
|
|
(2.1
|
)
|
|
(6.0
|
)
|
|
9.8
|
|
Market gains and losses/reinvestment
|
34.7
|
|
|
26.0
|
|
|
4.6
|
|
|
1.1
|
|
|
(0.2
|
)
|
|
3.2
|
|
Foreign currency translation
|
(12.6
|
)
|
|
(7.3
|
)
|
|
(2.0
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(1.6
|
)
|
December 31, 2014
|
792.4
|
|
|
384.4
|
|
|
181.6
|
|
|
50.6
|
|
|
76.5
|
|
|
99.3
|
|
Average AUM
|
790.3
|
|
|
386.9
|
|
|
178.8
|
|
|
52.2
|
|
|
77.4
|
|
|
95.0
|
|
% of total average AUM
|
100.0
|
%
|
|
49.0
|
%
|
|
22.6
|
%
|
|
6.6
|
%
|
|
9.8
|
%
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2012
|
667.4
|
|
|
295.6
|
|
|
171.9
|
|
|
43.6
|
|
|
73.3
|
|
|
83.0
|
|
Long-term inflows
|
179.6
|
|
|
88.5
|
|
|
39.3
|
|
|
19.7
|
|
|
3.7
|
|
|
28.4
|
|
Long-term outflows
|
(157.9
|
)
|
|
(81.5
|
)
|
|
(37.0
|
)
|
|
(13.6
|
)
|
|
(3.5
|
)
|
|
(22.3
|
)
|
Long-term net flows
|
21.7
|
|
|
7.0
|
|
|
2.3
|
|
|
6.1
|
|
|
0.2
|
|
|
6.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
9.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|
—
|
|
Total net flows
|
34.4
|
|
|
10.7
|
|
|
2.3
|
|
|
6.1
|
|
|
9.2
|
|
|
6.1
|
|
Market gains and losses/reinvestment
|
78.8
|
|
|
77.4
|
|
|
(2.2
|
)
|
|
3.5
|
|
|
0.3
|
|
|
(0.2
|
)
|
Foreign currency translation
|
(1.9
|
)
|
|
(0.6
|
)
|
|
(0.3
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|
(1.0
|
)
|
December 31, 2013
|
778.7
|
|
|
383.1
|
|
|
171.7
|
|
|
53.3
|
|
|
82.7
|
|
|
87.9
|
|
Average AUM
|
725.6
|
|
|
336.0
|
|
|
173.9
|
|
|
51.2
|
|
|
79.4
|
|
|
85.1
|
|
% of total average AUM
|
100.0
|
%
|
|
46.3
|
%
|
|
24.0
|
%
|
|
7.1
|
%
|
|
10.9
|
%
|
|
11.7
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(4)
|
||||||
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Long-term inflows
|
35.5
|
|
|
25.8
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Long-term outflows
|
(33.4
|
)
|
|
(22.1
|
)
|
|
(6.3
|
)
|
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
Long-term net flows
|
2.1
|
|
|
3.7
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
Total net flows
|
0.7
|
|
|
1.9
|
|
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
(1.2
|
)
|
Market gains and losses/reinvestment
|
(2.3
|
)
|
|
0.9
|
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2015
|
139.1
|
|
|
91.0
|
|
|
38.6
|
|
|
—
|
|
|
0.4
|
|
|
9.1
|
|
Average AUM
|
141.1
|
|
|
89.4
|
|
|
41.1
|
|
|
—
|
|
|
0.1
|
|
|
10.5
|
|
% of total average AUM
|
100.0
|
%
|
|
63.4
|
%
|
|
29.1
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
139.7
|
|
|
85.6
|
|
|
39.5
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
Long-term inflows
|
32.8
|
|
|
20.5
|
|
|
8.5
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Long-term outflows
|
(26.8
|
)
|
|
(15.2
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
Long-term net flows
|
6.0
|
|
|
5.3
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(5.4
|
)
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
6.8
|
|
|
8.0
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Average AUM
|
142.8
|
|
|
87.7
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
14.0
|
|
% of total average AUM
|
100.0
|
%
|
|
61.4
|
%
|
|
28.8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2012
|
114.0
|
|
|
55.5
|
|
|
39.0
|
|
|
—
|
|
|
—
|
|
|
19.5
|
|
Long-term inflows
|
42.6
|
|
|
25.4
|
|
|
13.0
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
Long-term outflows
|
(34.0
|
)
|
|
(16.1
|
)
|
|
(10.1
|
)
|
|
—
|
|
|
—
|
|
|
(7.8
|
)
|
Long-term net flows
|
8.6
|
|
|
9.3
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
12.3
|
|
|
13.0
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
Market gains and losses/reinvestment
|
14.3
|
|
|
17.1
|
|
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Foreign currency translation
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
December 31, 2013
|
139.7
|
|
|
85.6
|
|
|
39.5
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
Average AUM
|
126.7
|
|
|
69.1
|
|
|
41.4
|
|
|
—
|
|
|
—
|
|
|
16.2
|
|
% of total average AUM
|
100.0
|
%
|
|
54.5
|
%
|
|
32.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
12.8
|
%
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2014
|
792.4
|
|
|
532.1
|
|
|
25.8
|
|
|
105.1
|
|
|
71.1
|
|
|
58.3
|
|
Long-term inflows
|
189.1
|
|
|
99.1
|
|
|
3.7
|
|
|
18.8
|
|
|
37.5
|
|
|
30.0
|
|
Long-term outflows
|
(172.9
|
)
|
|
(97.3
|
)
|
|
(4.2
|
)
|
|
(17.9
|
)
|
|
(29.2
|
)
|
|
(24.3
|
)
|
Long-term net flows
|
16.2
|
|
|
1.8
|
|
|
(0.5
|
)
|
|
0.9
|
|
|
8.3
|
|
|
5.7
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(11.9
|
)
|
|
(13.9
|
)
|
|
—
|
|
|
0.7
|
|
|
(0.3
|
)
|
|
1.6
|
|
Total net flows
|
2.5
|
|
|
(13.9
|
)
|
|
(0.5
|
)
|
|
1.6
|
|
|
8.0
|
|
|
7.3
|
|
Market gains and losses/reinvestment
|
(2.6
|
)
|
|
(6.8
|
)
|
|
0.9
|
|
|
3.0
|
|
|
1.3
|
|
|
(1.0
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(16.0
|
)
|
|
—
|
|
|
(4.5
|
)
|
|
(5.5
|
)
|
|
(5.0
|
)
|
|
(1.0
|
)
|
December 31, 2015
|
775.6
|
|
|
510.7
|
|
|
21.7
|
|
|
104.2
|
|
|
75.4
|
|
|
63.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
778.7
|
|
|
521.3
|
|
|
27.1
|
|
|
114.8
|
|
|
60.9
|
|
|
54.6
|
|
Long-term inflows
|
183.1
|
|
|
91.3
|
|
|
3.9
|
|
|
22.0
|
|
|
40.8
|
|
|
25.1
|
|
Long-term outflows
|
(175.0
|
)
|
|
(87.8
|
)
|
|
(4.5
|
)
|
|
(35.9
|
)
|
|
(24.8
|
)
|
|
(22.0
|
)
|
Long-term net flows
|
8.1
|
|
|
3.5
|
|
|
(0.6
|
)
|
|
(13.9
|
)
|
|
16.0
|
|
|
3.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
(4.8
|
)
|
|
(0.3
|
)
|
|
2.0
|
|
|
(3.1
|
)
|
|
0.4
|
|
Total net flows
|
(8.4
|
)
|
|
(12.0
|
)
|
|
(0.9
|
)
|
|
(11.9
|
)
|
|
12.9
|
|
|
3.5
|
|
Market gains and losses/reinvestment
|
34.7
|
|
|
22.9
|
|
|
2.0
|
|
|
7.6
|
|
|
(0.4
|
)
|
|
2.6
|
|
Foreign currency translation
|
(12.6
|
)
|
|
(0.1
|
)
|
|
(2.4
|
)
|
|
(5.4
|
)
|
|
(2.3
|
)
|
|
(2.4
|
)
|
December 31, 2014
|
792.4
|
|
|
532.1
|
|
|
25.8
|
|
|
105.1
|
|
|
71.1
|
|
|
58.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2012
|
667.4
|
|
|
452.5
|
|
|
25.2
|
|
|
101.9
|
|
|
38.8
|
|
|
49.0
|
|
Long-term inflows
|
179.6
|
|
|
104.7
|
|
|
3.8
|
|
|
16.3
|
|
|
32.1
|
|
|
22.7
|
|
Long-term outflows
|
(157.9
|
)
|
|
(94.2
|
)
|
|
(4.7
|
)
|
|
(22.0
|
)
|
|
(19.0
|
)
|
|
(18.0
|
)
|
Long-term net flows
|
21.7
|
|
|
10.5
|
|
|
(0.9
|
)
|
|
(5.7
|
)
|
|
13.1
|
|
|
4.7
|
|
Net flows in Invesco PowerShares QQQ fund
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
9.0
|
|
|
6.0
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
3.1
|
|
|
(0.1
|
)
|
Total net flows
|
34.4
|
|
|
20.2
|
|
|
(0.7
|
)
|
|
(5.9
|
)
|
|
16.2
|
|
|
4.6
|
|
Market gains and losses/reinvestment
|
78.8
|
|
|
48.3
|
|
|
4.4
|
|
|
16.3
|
|
|
5.5
|
|
|
4.3
|
|
Foreign currency translation
|
(1.9
|
)
|
|
0.3
|
|
|
(1.8
|
)
|
|
2.5
|
|
|
0.4
|
|
|
(3.3
|
)
|
December 31, 2013
|
778.7
|
|
|
521.3
|
|
|
27.1
|
|
|
114.8
|
|
|
60.9
|
|
|
54.6
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
Long-term inflows
|
35.5
|
|
|
33.3
|
|
|
0.1
|
|
|
—
|
|
|
0.6
|
|
|
1.5
|
|
Long-term outflows
|
(33.4
|
)
|
|
(31.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(1.5
|
)
|
Long-term net flows
|
2.1
|
|
|
2.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(1.8
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Total net flows
|
0.7
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Market gains and losses/reinvestment
|
(2.3
|
)
|
|
(2.7
|
)
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2015
|
139.1
|
|
|
134.4
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
139.7
|
|
|
135.2
|
|
|
0.1
|
|
|
—
|
|
|
1.8
|
|
|
2.6
|
|
Long-term inflows
|
32.8
|
|
|
32.1
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
|
0.2
|
|
Long-term outflows
|
(26.8
|
)
|
|
(25.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.6
|
)
|
Long-term net flows
|
6.0
|
|
|
6.4
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(10.7
|
)
|
|
(10.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(4.7
|
)
|
|
(4.3
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
6.8
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Foreign currency translation
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2012
|
114.0
|
|
|
107.8
|
|
|
0.1
|
|
|
—
|
|
|
1.1
|
|
|
5.0
|
|
Long-term inflows
|
42.6
|
|
|
41.8
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.1
|
|
Long-term outflows
|
(34.0
|
)
|
|
(31.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
(2.2
|
)
|
Long-term net flows
|
8.6
|
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
(2.1
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
12.3
|
|
|
14.0
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
(2.1
|
)
|
Market gains and losses/reinvestment
|
14.3
|
|
|
13.4
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.6
|
|
Foreign currency translation
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
December 31, 2013
|
139.7
|
|
|
135.2
|
|
|
0.1
|
|
|
—
|
|
|
1.8
|
|
|
2.6
|
|
(1)
|
On December 31, 2013, the company completed the sale of Atlantic Trust. All AUM amounts quoted in the tables exclude the AUM of the discontinued operations, Atlantic Trust.
|
(2)
|
Channel refers to the internal distribution channel from which the AUM originated. Retail AUM represents AUM distributed by the company's retail sales team. Institutional AUM represents AUM distributed by our institutional sales team. This aggregation is viewed as a proxy for presenting AUM in the retail and institutional markets in which the company operates.
|
(3)
|
Asset classes are descriptive groupings of AUM by common type of underlying investments.
|
(4)
|
See Item 1, “Business - Investment Management Capabilities” for a description of the investment objectives included within the Alternatives asset class.
|
(5)
|
Ending Money Market AUM includes
$58.5 billion
in institutional money market AUM and
$6.1 billion
in retail money market AUM.
|
(6)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||||
Total operating revenues
|
(39.2
|
)
|
|
5,122.9
|
|
|
(35.2
|
)
|
|
5,147.1
|
|
|
(37.9
|
)
|
|
4,644.6
|
|
Total operating expenses
|
24.0
|
|
|
3,764.5
|
|
|
34.6
|
|
|
3,870.2
|
|
|
34.9
|
|
|
3,524.4
|
|
Operating income
|
(63.2
|
)
|
|
1,358.4
|
|
|
(69.8
|
)
|
|
1,276.9
|
|
|
(72.8
|
)
|
|
1,120.2
|
|
Equity in earnings of unconsolidated affiliates
|
(1.7
|
)
|
|
35.1
|
|
|
(4.0
|
)
|
|
32.8
|
|
|
(2.5
|
)
|
|
35.5
|
|
Interest and dividend income
|
(4.4
|
)
|
|
13.0
|
|
|
(3.3
|
)
|
|
13.1
|
|
|
(5.5
|
)
|
|
10.0
|
|
Interest expense
|
—
|
|
|
(81.7
|
)
|
|
—
|
|
|
(73.1
|
)
|
|
—
|
|
|
(44.6
|
)
|
Other gains and losses, net
|
(3.9
|
)
|
|
(1.5
|
)
|
|
(4.8
|
)
|
|
28.1
|
|
|
(11.8
|
)
|
|
2.6
|
|
Other income/(expense) of CSIP, net
|
—
|
|
|
11.7
|
|
|
—
|
|
|
24.3
|
|
|
—
|
|
|
2.9
|
|
Interest and dividend income of CIP
|
253.0
|
|
|
253.0
|
|
|
206.5
|
|
|
206.5
|
|
|
190.0
|
|
|
190.0
|
|
Interest expense of CIP
|
(188.9
|
)
|
|
(188.9
|
)
|
|
(133.9
|
)
|
|
(133.9
|
)
|
|
(123.3
|
)
|
|
(123.3
|
)
|
Other gains/(losses) of CIP, net
|
(37.0
|
)
|
|
(37.0
|
)
|
|
20.4
|
|
|
20.4
|
|
|
61.9
|
|
|
61.9
|
|
Income from continuing operations before taxes
|
(46.1
|
)
|
|
1,362.1
|
|
|
11.1
|
|
|
1,395.1
|
|
|
36.0
|
|
|
1,255.2
|
|
Income tax provision
|
—
|
|
|
(398.0
|
)
|
|
—
|
|
|
(390.6
|
)
|
|
—
|
|
|
(336.9
|
)
|
Income from continuing operations, net of taxes
|
(46.1
|
)
|
|
964.1
|
|
|
11.1
|
|
|
1,004.5
|
|
|
36.0
|
|
|
918.3
|
|
Income from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|
—
|
|
|
64.5
|
|
Net income
|
(46.1
|
)
|
|
964.1
|
|
|
11.1
|
|
|
1,001.1
|
|
|
36.0
|
|
|
982.8
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities, net
|
5.7
|
|
|
4.0
|
|
|
(3.3
|
)
|
|
(13.0
|
)
|
|
(44.7
|
)
|
|
(42.5
|
)
|
Net income attributable to Invesco Ltd.
|
(40.4
|
)
|
|
968.1
|
|
|
7.8
|
|
|
988.1
|
|
|
(8.7
|
)
|
|
940.3
|
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2015 vs 2014
|
|
2014 vs 2013
|
|||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Investment management fees
|
4,061.1
|
|
|
4,054.1
|
|
|
3,599.6
|
|
|
7.0
|
|
|
0.2
|
%
|
|
454.5
|
|
|
12.6
|
%
|
Service and distribution fees
|
855.4
|
|
|
893.1
|
|
|
872.8
|
|
|
(37.7
|
)
|
|
(4.2
|
)%
|
|
20.3
|
|
|
2.3
|
%
|
Performance fees
|
85.9
|
|
|
61.1
|
|
|
55.9
|
|
|
24.8
|
|
|
40.6
|
%
|
|
5.2
|
|
|
9.3
|
%
|
Other
|
120.5
|
|
|
138.8
|
|
|
116.3
|
|
|
(18.3
|
)
|
|
(13.2
|
)%
|
|
22.5
|
|
|
19.3
|
%
|
Total operating revenues
|
5,122.9
|
|
|
5,147.1
|
|
|
4,644.6
|
|
|
(24.2
|
)
|
|
(0.5
|
)%
|
|
502.5
|
|
|
10.8
|
%
|
Third-party distribution, service and advisory expenses
|
(1,579.9
|
)
|
|
(1,630.7
|
)
|
|
(1,489.2
|
)
|
|
50.8
|
|
|
(3.1
|
)%
|
|
(141.5
|
)
|
|
9.5
|
%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
61.0
|
|
|
56.7
|
|
|
51.7
|
|
|
4.3
|
|
|
7.6
|
%
|
|
5.0
|
|
|
9.7
|
%
|
CIP
|
39.2
|
|
|
35.2
|
|
|
37.9
|
|
|
4.0
|
|
|
11.4
|
%
|
|
(2.7
|
)
|
|
(7.1
|
)%
|
Other reconciling items
|
—
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
N/A
|
|
|
(7.0
|
)
|
|
(100.0
|
)%
|
Net revenues*
|
3,643.2
|
|
|
3,608.3
|
|
|
3,252.0
|
|
|
34.9
|
|
|
1.0
|
%
|
|
356.3
|
|
|
11.0
|
%
|
*
|
Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of net revenues from joint venture arrangements, plus management and performance fees earned from, less other revenues recorded by, CIP, plus other reconciling items. See “Schedule of Non-GAAP Information” for additional important disclosures regarding the use of net revenues.
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2015 vs 2014
|
|
2014 vs 2013
|
|||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Employee compensation
|
1,395.5
|
|
|
1,394.5
|
|
|
1,329.3
|
|
|
1.0
|
|
|
0.1
|
%
|
|
65.2
|
|
|
4.9
|
%
|
Third-party distribution, service and advisory
|
1,579.9
|
|
|
1,630.7
|
|
|
1,489.2
|
|
|
(50.8
|
)
|
|
(3.1
|
)%
|
|
141.5
|
|
|
9.5
|
%
|
Marketing
|
115.4
|
|
|
112.1
|
|
|
98.6
|
|
|
3.3
|
|
|
2.9
|
%
|
|
13.5
|
|
|
13.7
|
%
|
Property, office and technology
|
312.0
|
|
|
336.4
|
|
|
292.8
|
|
|
(24.4
|
)
|
|
(7.3
|
)%
|
|
43.6
|
|
|
14.9
|
%
|
General and administrative
|
361.7
|
|
|
396.5
|
|
|
311.3
|
|
|
(34.8
|
)
|
|
(8.8
|
)%
|
|
85.2
|
|
|
27.4
|
%
|
Transaction and integration
|
—
|
|
|
—
|
|
|
3.2
|
|
|
—
|
|
|
N/A
|
|
|
(3.2
|
)
|
|
(100.0
|
)%
|
Total operating expenses
|
3,764.5
|
|
|
3,870.2
|
|
|
3,524.4
|
|
|
(105.7
|
)
|
|
(2.7
|
)%
|
|
345.8
|
|
|
9.8
|
%
|
$ in millions
|
2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2014
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
2013
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|||||||||
Employee compensation
|
1,395.5
|
|
|
37.1
|
%
|
|
27.2
|
%
|
|
1,394.5
|
|
|
36.0
|
%
|
|
27.1
|
%
|
|
1,329.3
|
|
|
37.7
|
%
|
|
28.6
|
%
|
Third-party distribution, service and advisory
|
1,579.9
|
|
|
42.0
|
%
|
|
30.8
|
%
|
|
1,630.7
|
|
|
42.1
|
%
|
|
31.7
|
%
|
|
1,489.2
|
|
|
42.3
|
%
|
|
32.1
|
%
|
Marketing
|
115.4
|
|
|
3.1
|
%
|
|
2.3
|
%
|
|
112.1
|
|
|
2.9
|
%
|
|
2.2
|
%
|
|
98.6
|
|
|
2.8
|
%
|
|
2.1
|
%
|
Property, office and technology
|
312.0
|
|
|
8.3
|
%
|
|
6.1
|
%
|
|
336.4
|
|
|
8.7
|
%
|
|
6.5
|
%
|
|
292.8
|
|
|
8.3
|
%
|
|
6.3
|
%
|
General and administrative
|
361.7
|
|
|
9.7
|
%
|
|
7.1
|
%
|
|
396.5
|
|
|
10.3
|
%
|
|
7.7
|
%
|
|
311.3
|
|
|
8.8
|
%
|
|
6.7
|
%
|
Transaction and integration
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
3.2
|
|
|
0.1
|
%
|
|
0.1
|
%
|
Total operating expenses
|
3,764.5
|
|
|
100.0
|
%
|
|
73.5
|
%
|
|
3,870.2
|
|
|
100.0
|
%
|
|
75.2
|
%
|
|
3,524.4
|
|
|
100.0
|
%
|
|
75.9
|
%
|
|
|
|
|
|
|
|
Variance
|
|||||||||||||
|
Years ended December 31,
|
|
2015 vs 2014
|
|
2014 vs 2013
|
|||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
Equity in earnings of unconsolidated affiliates
|
35.1
|
|
|
32.8
|
|
|
35.5
|
|
|
2.3
|
|
|
7.0
|
%
|
|
(2.7
|
)
|
|
(7.6
|
)%
|
Interest and dividend income
|
13.0
|
|
|
13.1
|
|
|
10.0
|
|
|
(0.1
|
)
|
|
(0.8
|
)%
|
|
3.1
|
|
|
31.0
|
%
|
Interest expense
|
(81.7
|
)
|
|
(73.1
|
)
|
|
(44.6
|
)
|
|
(8.6
|
)
|
|
11.8
|
%
|
|
(28.5
|
)
|
|
63.9
|
%
|
Other gains and losses, net
|
(1.5
|
)
|
|
28.1
|
|
|
2.6
|
|
|
(29.6
|
)
|
|
(105.3
|
)%
|
|
25.5
|
|
|
980.8
|
%
|
Other income/(expense) of CSIP, net
|
11.7
|
|
|
24.3
|
|
|
2.9
|
|
|
(12.6
|
)
|
|
(51.9
|
)%
|
|
21.4
|
|
|
737.9
|
%
|
Other income and expenses of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest and dividend income of CIP
|
253.0
|
|
|
206.5
|
|
|
190.0
|
|
|
46.5
|
|
|
22.5
|
%
|
|
16.5
|
|
|
8.7
|
%
|
Interest expense of CIP
|
(188.9
|
)
|
|
(133.9
|
)
|
|
(123.3
|
)
|
|
(55.0
|
)
|
|
41.1
|
%
|
|
(10.6
|
)
|
|
8.6
|
%
|
Other gains/(losses) of CIP, net
|
(37.0
|
)
|
|
20.4
|
|
|
61.9
|
|
|
(57.4
|
)
|
|
(281.4
|
)%
|
|
(41.5
|
)
|
|
(67.0
|
)%
|
Total other income and expenses
|
3.7
|
|
|
118.2
|
|
|
135.0
|
|
|
(114.5
|
)
|
|
(96.9
|
)%
|
|
(16.8
|
)
|
|
(12.4
|
)%
|
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||
Operating revenues, U.S. GAAP basis
|
5,122.9
|
|
|
5,147.1
|
|
|
4,644.6
|
|
|
4,050.4
|
|
|
3,982.3
|
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
(1)
|
61.0
|
|
|
56.7
|
|
|
51.7
|
|
|
37.5
|
|
|
41.4
|
|
Third party distribution, service and advisory expenses
(2)
|
(1,579.9
|
)
|
|
(1,630.7
|
)
|
|
(1,489.2
|
)
|
|
(1,308.2
|
)
|
|
(1,279.4
|
)
|
CIP
(3)
|
39.2
|
|
|
35.2
|
|
|
37.9
|
|
|
41.0
|
|
|
47.3
|
|
Other reconciling items
(6)
|
—
|
|
|
—
|
|
|
7.0
|
|
|
15.3
|
|
|
—
|
|
Net revenues
|
3,643.2
|
|
|
3,608.3
|
|
|
3,252.0
|
|
|
2,836.0
|
|
|
2,791.6
|
|
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||
Operating income, U.S. GAAP basis
|
1,358.4
|
|
|
1,276.9
|
|
|
1,120.2
|
|
|
842.6
|
|
|
882.1
|
|
Proportional share of net operating income from joint venture investments
(1)
|
27.4
|
|
|
25.9
|
|
|
21.3
|
|
|
15.7
|
|
|
19.2
|
|
CIP
(3)
|
63.2
|
|
|
69.8
|
|
|
73.0
|
|
|
72.5
|
|
|
60.3
|
|
Acquisition/disposition related adjustments
(4)
|
12.8
|
|
|
12.6
|
|
|
23.0
|
|
|
31.4
|
|
|
66.7
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
4.3
|
|
|
11.5
|
|
|
25.1
|
|
|
14.3
|
|
|
5.8
|
|
Other reconciling items
(6)
|
27.6
|
|
|
98.3
|
|
|
29.5
|
|
|
35.6
|
|
|
12.1
|
|
Adjusted operating income
|
1,493.7
|
|
|
1,495.0
|
|
|
1,292.1
|
|
|
1,012.1
|
|
|
1,046.2
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating margin*
|
26.5
|
%
|
|
24.8
|
%
|
|
24.1
|
%
|
|
20.8
|
%
|
|
22.2
|
%
|
Adjusted operating margin**
|
41.0
|
%
|
|
41.4
|
%
|
|
39.7
|
%
|
|
35.7
|
%
|
|
37.5
|
%
|
$ in millions, except per share data
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
|
677.1
|
|
|
729.7
|
|
|||||
CIP, eliminated upon consolidation
(3)
|
40.4
|
|
|
(7.8
|
)
|
|
8.7
|
|
|
10.7
|
|
|
(20.2
|
)
|
|||||
Acquisition/disposition related adjustments, net of tax
(4)
|
14.0
|
|
|
36.2
|
|
|
(23.8
|
)
|
|
21.9
|
|
|
62.3
|
|
|||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
5.9
|
|
|
(0.3
|
)
|
|
(12.6
|
)
|
|
(7.4
|
)
|
|
2.5
|
|
|||||
Other reconciling items, net of tax
(6)
|
20.3
|
|
|
78.6
|
|
|
40.7
|
|
|
46.3
|
|
|
(15.2
|
)
|
|||||
Adjusted net income attributable to Invesco Ltd.
|
1,048.7
|
|
|
1,094.8
|
|
|
953.3
|
|
|
748.6
|
|
|
759.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shares outstanding - diluted
|
429.3
|
|
|
435.6
|
|
|
448.5
|
|
|
453.8
|
|
|
464.7
|
|
|||||
Diluted EPS
|
|
$2.26
|
|
|
|
$2.27
|
|
|
|
$2.10
|
|
|
|
$1.49
|
|
|
|
$1.57
|
|
Adjusted diluted EPS***
|
|
$2.44
|
|
|
|
$2.51
|
|
|
|
$2.13
|
|
|
|
$1.65
|
|
|
|
$1.63
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to adjusted operating income divided by net revenues.
|
***
|
Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average shares outstanding amount used in the calculation of diluted EPS.
|
(1)
|
Proportional share of net revenues and operating income from joint venture investments
|
(2)
|
Third-party distribution, service and advisory expenses
|
(3)
|
CIP
|
|
Year ended December 31,
|
|||||||||||||
$ in millions, except per share data
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||
Management fees earned from CIP, eliminated upon consolidation
|
30.7
|
|
|
26.7
|
|
|
27.0
|
|
|
38.6
|
|
|
46.8
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
8.5
|
|
|
9.1
|
|
|
11.3
|
|
|
2.4
|
|
|
0.5
|
|
Other revenues recorded by CIP
|
—
|
|
|
(0.6
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
CIP related adjustments in arriving at net revenues
|
39.2
|
|
|
35.2
|
|
|
37.9
|
|
|
41.0
|
|
|
47.3
|
|
(4)
|
Acquisition/disposition related adjustments
|
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||
Acquisition/disposition related:
|
|
|
|
|
|
|
|
|
|
|||||
Employee compensation expense
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
15.0
|
|
Transaction and integration expense
|
—
|
|
|
—
|
|
|
3.2
|
|
|
8.2
|
|
|
29.4
|
|
Intangible amortization expense
|
10.6
|
|
|
12.6
|
|
|
15.4
|
|
|
25.5
|
|
|
35.5
|
|
Change in contingent consideration estimates
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
(13.2
|
)
|
Other acquisition-related items
|
2.2
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
Adjustments to operating income
|
12.8
|
|
|
12.6
|
|
|
23.0
|
|
|
31.4
|
|
|
66.7
|
|
Gain on sale of CLO management contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.3
|
)
|
|
—
|
|
Change in contingent consideration estimates
|
(27.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||
Taxation on transaction and integration
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(3.1
|
)
|
|
(11.2
|
)
|
Taxation on amortization
|
(1.5
|
)
|
|
(1.6
|
)
|
|
(1.5
|
)
|
|
(2.6
|
)
|
|
(4.4
|
)
|
Deferred taxation
|
20.1
|
|
|
21.8
|
|
|
21.3
|
|
|
20.1
|
|
|
21.1
|
|
Taxation on change in contingent consideration estimates
|
10.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation on gain on sale of CLO management contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Taxation on other acquisition-related items
|
(0.6
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
(Income)/loss from discontinued operations, net of taxes
|
—
|
|
|
3.4
|
|
|
(64.5
|
)
|
|
(18.1
|
)
|
|
(9.9
|
)
|
Adjustments to net income attributable to Invesco Ltd.
|
14.0
|
|
|
36.2
|
|
|
(23.8
|
)
|
|
21.9
|
|
|
62.3
|
|
(5)
|
Market movement on deferred compensation plan liabilities
|
(6)
|
Other reconciling items
|
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||
Other non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|||||
Investment management fees accrual adjustment
(a)
|
—
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
Third party distribution, service and advisory expenses - European infrastructure initiative
(b)
|
—
|
|
|
—
|
|
|
2.7
|
|
|
15.3
|
|
|
—
|
|
Adjustments to net revenues
|
—
|
|
|
—
|
|
|
7.0
|
|
|
15.3
|
|
|
—
|
|
Business optimization charges:
(c)
|
|
|
|
|
|
|
|
|
|
|||||
Employee compensation
|
12.2
|
|
|
7.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consulting and temporary labor
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Property, office and technology
|
(4.4
|
)
|
|
33.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Regulatory charge
(d)
|
12.6
|
|
|
31.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Legal fees for regulatory charge
(d)
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Fund reimbursement expense
(e)
|
4.7
|
|
|
31.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
U.K. FSCS levy
(f)
|
—
|
|
|
(4.7
|
)
|
|
3.0
|
|
|
—
|
|
|
0.4
|
|
European infrastructure initiative
(b)
|
—
|
|
|
—
|
|
|
7.8
|
|
|
20.3
|
|
|
18.8
|
|
Capitalized software development write-off
(g)
|
—
|
|
|
—
|
|
|
11.7
|
|
|
—
|
|
|
—
|
|
Termination of stadium naming rights
(h)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.4
|
)
|
Fund accounting reimbursement costs
(i)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Litigation settlement costs
(j)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
Adjustments to operating income
|
27.6
|
|
|
98.3
|
|
|
29.5
|
|
|
35.6
|
|
|
12.1
|
|
Foreign exchange hedge
(k)
|
1.0
|
|
|
(0.2
|
)
|
|
(0.6
|
)
|
|
0.8
|
|
|
—
|
|
Payment to an investment trust
(l)
|
—
|
|
|
—
|
|
|
31.9
|
|
|
—
|
|
|
—
|
|
Senior notes call premium
(m)
|
—
|
|
|
—
|
|
|
—
|
|
|
23.5
|
|
|
—
|
|
Litigation settlement credit
(j)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45.0
|
)
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|||||
Taxation on investment management fees accrual adjustment
(a)
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
Taxation on European infrastructure initiative
(b)
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
(7.6
|
)
|
|
(1.9
|
)
|
Taxation on business optimization charges
(c)
|
(3.8
|
)
|
|
(8.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation on regulatory-related charges
(d)
|
(2.7
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation on fund reimbursement expense
(e)
|
(1.8
|
)
|
|
(11.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Taxation on U.K. FSCS levy
(f)
|
—
|
|
|
1.0
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.1
|
)
|
Taxation on capitalized software development write-off
(g)
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
|
—
|
|
|
—
|
|
Taxation on termination of stadium naming rights
(h)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
Taxation on fund accounting reimbursement costs
(i)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Taxation on litigation settlement credit
(j)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
Taxation on foreign exchange hedge
(k)
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
Taxation on payment to an investment trust
(l)
|
—
|
|
|
—
|
|
|
(12.1
|
)
|
|
—
|
|
|
—
|
|
Taxation on senior notes call premium
(m)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Adjustments to net income attributable to Invesco Ltd.
|
20.3
|
|
|
78.6
|
|
|
40.7
|
|
|
46.3
|
|
|
(15.2
|
)
|
a.
|
During the year ended December 31, 2013, the company reduced a management fee revenue accrual by $4.3 million to reflect a multi-year true-up. Inclusion of this true-up in the company’s non-GAAP financial information would depress the derived metric of net revenue yield on AUM from continuing operations, an important metric calculated from a non-GAAP financial measure which is often contemplated by users of the company’s financial information to evaluate the company with industry peers. The true-up is not indicative of a trend in future net revenue yield on AUM; therefore, it is not included in management’s evaluation of the results of the business. On this basis, the amount is added back to management fees to arrive at net revenue.
|
b.
|
European infrastructure transformational initiative: The company has outsourced its European transfer agency and has made certain structural changes to product and distribution platforms. Expenses incurred related to the European infrastructure activities are excluded in arriving at the non-GAAP financial information. In connection with the initiative, operational process changes resulted in an accounting adjustment recognizing additional distribution expense in the years ended December 31, 2012 and December 31, 2013.
|
c.
|
Business optimization: Operating expenses for
2015
include costs associated with a business transformation initiative that include severance costs of
$12.2 million
, and consulting and temporary labor costs of
$2.0 million
.
|
d.
|
General and administrative expenses for
2015
include a provision of
$12.6 million
pertaining to regulatory actions and related legal fees of
$0.5 million
. This includes
$7.6 million
associated with our private equity business.
|
e.
|
General and administrative expenses for
2015
also includes a charge of
$4.7 million
(
2014
:
$31.1 million
) in respect of a multi-year fund reimbursement expense associated with historical private equity management fees. The charge resulted primarily from using a more appropriate methodology regarding the calculation of offsets to management fees.
|
f.
|
Included within general and administrative expenses for 2014 is a credit of $4.7 million related to the partial refund of a $15.3 million levy in 2010 from the U.K. Financial Services Compensation Scheme. An additional $0.4 million charge was recorded in the year ended December 31, 2011 and $3.0 million in the year ended December 31, 2013 reflecting revised estimates of the levy.
|
g.
|
Property, office and technology expenses includes a charge of $11.7 million in the year ended December 31, 2013 related to the write-off of capitalized IT software development costs.
|
h.
|
Included within marketing expenses in the year ended December 31, 2011 is a credit of $10.4 million related to the termination of naming rights to the Denver Broncos stadium.
|
i.
|
Included within general and administrative expenses in the year ended December 31, 2010 is a charge of $8.9 million representing reimbursement costs from the correction of historical foreign exchange allocations in the fund accounting process that impacted the reporting of fund performance in certain funds. A $0.3 million credit was recorded in the year ended December 31, 2011 reflecting the final amount reimbursed.
|
j.
|
Included within other gains and losses, net 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. Included within general and administrative expenses are legal fees associated with the litigation of $3.6 million.
|
k.
|
Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provided coverage through March 25, 2016. The adjustment from U.S. GAAP to non-GAAP earnings removes the impact of market volatility; therefore, the company's non-GAAP results include only the amortization of the cost of the contracts during the contract period.
|
l.
|
On December 31, 2013, at the time of creating a new trust company subsidiary to continue operating the company’s institutional trust activities immediately following the disposition of Atlantic Trust, the company made a $31.9 million payment to a managed investment trust, which resulted in the subsequent termination of an outstanding support agreement. This expense was recorded in other gains/(losses) in the company’s Consolidated Statement of Income during the year ended December 31, 2013.
|
m.
|
Other gains and losses, net included a charge of $23.5 million in the year ended December 31, 2012 related to the call premiums on the redemption of the $333.5 million principal amount of 5.375% senior notes due February 27, 2013 and the $197.1 million principal amount of the 5.375% senior notes due December 15, 2014.
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
|
Impact of CIP
|
|
Consolidated Total
|
|
Impact of CIP
|
|
Consolidated Total
|
||||
ASSETS
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,514.2
|
|
Unsettled fund receivables
|
|
—
|
|
|
566.3
|
|
|
—
|
|
|
732.4
|
|
Accounts receivable
|
|
(4.9
|
)
|
|
528.1
|
|
|
(3.8
|
)
|
|
545.9
|
|
Investments
|
|
(68.5
|
)
|
|
1,019.1
|
|
|
(94.9
|
)
|
|
885.4
|
|
Assets of CSIP
|
|
—
|
|
|
319.1
|
|
|
—
|
|
|
305.8
|
|
Assets of CIP:
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents of CIP
|
|
363.3
|
|
|
363.3
|
|
|
404.0
|
|
|
404.0
|
|
Accounts receivable of CIP
|
|
173.5
|
|
|
173.5
|
|
|
161.3
|
|
|
161.3
|
|
Investments of CIP
|
|
6,016.1
|
|
|
6,016.1
|
|
|
5,762.8
|
|
|
5,762.8
|
|
Assets held for policyholders
|
|
—
|
|
|
6,051.5
|
|
|
—
|
|
|
1,697.9
|
|
Prepaid assets
|
|
—
|
|
|
121.2
|
|
|
—
|
|
|
132.1
|
|
Other assets
|
|
—
|
|
|
107.0
|
|
|
—
|
|
|
79.5
|
|
Property and equipment, net
|
|
—
|
|
|
426.9
|
|
|
—
|
|
|
402.6
|
|
Intangible assets, net
|
|
—
|
|
|
1,354.0
|
|
|
—
|
|
|
1,246.7
|
|
Goodwill
|
|
—
|
|
|
6,175.7
|
|
|
—
|
|
|
6,579.4
|
|
Total assets
|
|
6,479.5
|
|
|
25,073.2
|
|
|
6,229.4
|
|
|
20,450.0
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
||||
Accrued compensation and benefits
|
|
—
|
|
|
661.3
|
|
|
—
|
|
|
667.3
|
|
Accounts payable and accrued expenses
|
|
—
|
|
|
863.1
|
|
|
—
|
|
|
757.3
|
|
Liabilities of CIP:
|
|
|
|
|
|
|
|
|
||||
Debt of CIP
|
|
5,437.0
|
|
|
5,437.0
|
|
|
5,149.6
|
|
|
5,149.6
|
|
Other liabilities of CIP
|
|
273.7
|
|
|
273.7
|
|
|
280.9
|
|
|
280.9
|
|
Policyholder payables
|
|
—
|
|
|
6,051.5
|
|
|
—
|
|
|
1,697.9
|
|
Unsettled fund payables
|
|
—
|
|
|
561.9
|
|
|
—
|
|
|
730.1
|
|
Long-term debt
|
|
—
|
|
|
2,072.8
|
|
|
—
|
|
|
1,576.8
|
|
Deferred tax liabilities, net
|
|
—
|
|
|
288.9
|
|
|
—
|
|
|
304.8
|
|
Total liabilities
|
|
5,710.7
|
|
|
16,210.2
|
|
|
5,430.5
|
|
|
11,164.7
|
|
TEMPORARY EQUITY
|
|
|
|
|
|
|
|
|
||||
Redeemable noncontrolling interests in CSIP
|
|
—
|
|
|
167.3
|
|
|
—
|
|
|
165.5
|
|
|
|
|
|
|
|
|
|
|
||||
PERMANENT EQUITY
|
|
|
|
|
|
|
|
|
||||
Equity attributable to Invesco Ltd.:
|
|
|
|
|
|
|
|
|
||||
Common shares
|
|
—
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
Additional paid-in-capital
|
|
—
|
|
|
6,197.7
|
|
|
—
|
|
|
6,133.6
|
|
Treasury shares
|
|
—
|
|
|
(2,404.1
|
)
|
|
—
|
|
|
(1,898.1
|
)
|
Retained earnings
|
|
(20.1
|
)
|
|
4,439.6
|
|
|
20.3
|
|
|
3,926.0
|
|
Retained earnings appropriated for investors in CIP
|
|
—
|
|
|
—
|
|
|
17.6
|
|
|
17.6
|
|
Accumulated other comprehensive income, net of tax
|
|
20.1
|
|
|
(446.0
|
)
|
|
(20.2
|
)
|
|
48.8
|
|
Total equity attributable to Invesco Ltd.
|
|
—
|
|
|
7,885.3
|
|
|
17.7
|
|
|
8,326.0
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
|
768.8
|
|
|
810.4
|
|
|
781.2
|
|
|
793.8
|
|
Total permanent equity
|
|
768.8
|
|
|
8,695.7
|
|
|
798.9
|
|
|
9,119.8
|
|
Total liabilities, temporary and permanent equity
|
|
6,479.5
|
|
|
25,073.2
|
|
|
6,229.4
|
|
|
20,450.0
|
|
•
|
reinvestment in the business;
|
•
|
moderate annual growth of dividends (as further discussed in the "Dividends" section below);
|
•
|
share repurchase; and
|
•
|
establishment of an approximate $1 billion cash buffer in excess of European regulatory and liquidity requirements.
|
|
Excluding CIP (Non-GAAP)
(1,3)
|
|
Including CIP (U.S. GAAP)
(3)
|
||||||||||||||
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||
Cash and cash equivalents
|
1,851.4
|
|
|
1,514.2
|
|
|
1,331.2
|
|
|
1,851.4
|
|
|
1,514.2
|
|
|
1,331.2
|
|
Investments of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
6,016.1
|
|
|
5,762.8
|
|
|
4,734.7
|
|
Total assets
(1)
|
18,593.7
|
|
|
14,220.6
|
|
|
13,938.9
|
|
|
25,073.2
|
|
|
20,450.0
|
|
|
19,256.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
2,072.8
|
|
|
1,576.8
|
|
|
1,574.9
|
|
|
2,072.8
|
|
|
1,576.8
|
|
|
1,574.9
|
|
Long-term debt of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
5,437.0
|
|
|
5,149.6
|
|
|
4,181.7
|
|
Long-term debt / Long-term debt plus CIP debt
|
2,072.8
|
|
|
1,576.8
|
|
|
1,574.9
|
|
|
7,509.8
|
|
|
6,726.4
|
|
|
5,756.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total liabilities
(1)
|
10,499.5
|
|
|
5,734.2
|
|
|
5,636.0
|
|
|
16,210.2
|
|
|
11,164.7
|
|
|
10,279.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total permanent equity
(1)
|
7,926.9
|
|
|
8,320.9
|
|
|
8,302.9
|
|
|
8,695.7
|
|
|
9,119.8
|
|
|
8,977.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt/Equity %
(1,2)
|
26.1
|
%
|
|
18.9
|
%
|
|
19.0
|
%
|
|
86.4
|
%
|
|
73.8
|
%
|
|
64.1
|
%
|
(1)
|
The balance sheet line items excluding CIP are non-GAAP financial measures. To calculate total assets excluding CIP at
December 31, 2015
, use U.S. GAAP total assets of
$25,073.2 million
(
2014
:
$20,450.0 million
;
2013
:
$19,256.8 million
) and
|
(2)
|
The debt-to-equity ratio excluding CIP is a non-GAAP financial measure. The debt-to-equity ratio is calculated as long-term debt divided by total permanent equity for the balance sheet excluding CIP and long-term debt plus long-term debt of CIP divided by permanent equity for the balance sheet including CIP. Management believes that it is important to illustrate for users of our Consolidated Financial Statements that calculating a balance sheet measure, such as the debt-to-equity ratio, including the impact of CIP causes the company to appear far more indebted than is the case. As disclosed above, the debt of CIP is not the company's debt, nor do the noteholders of the CIP debt have any recourse to the company.
|
(3)
|
The company adopted ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs," as of December 31, 2015 on a retrospective basis to all prior balance sheet periods presented. As a result of the retrospective adoption, the Company reclassified unamortized debt issuance costs of
$15.9 million
and
$12.5 million
as of December 31, 2015 and 2014, respectively, from Other Assets to Long-term Debt within its consolidated balance sheets.
|
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income/(loss)
|
(46.1
|
)
|
|
964.1
|
|
|
11.1
|
|
|
1,001.1
|
|
|
36.0
|
|
|
982.8
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization and depreciation
|
—
|
|
|
93.6
|
|
|
—
|
|
|
89.4
|
|
|
—
|
|
|
88.4
|
|
Share-based compensation expense
|
—
|
|
|
150.3
|
|
|
—
|
|
|
138.0
|
|
|
—
|
|
|
133.1
|
|
(Gain)/loss on disposal of business, property and equipment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64.8
|
)
|
Other gains and losses, net
|
3.9
|
|
|
1.5
|
|
|
4.8
|
|
|
(28.1
|
)
|
|
11.8
|
|
|
(34.4
|
)
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
0.8
|
|
|
—
|
|
|
(13.6
|
)
|
|
—
|
|
|
(2.0
|
)
|
Other (gains)/losses of CIP, net
|
37.0
|
|
|
37.0
|
|
|
(20.4
|
)
|
|
(20.4
|
)
|
|
(61.9
|
)
|
|
(61.9
|
)
|
Equity in earnings of unconsolidated affiliates
|
1.7
|
|
|
(35.1
|
)
|
|
4.0
|
|
|
(32.8
|
)
|
|
2.5
|
|
|
(35.5
|
)
|
Dividends from unconsolidated affiliates
|
—
|
|
|
18.7
|
|
|
—
|
|
|
19.6
|
|
|
—
|
|
|
16.5
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Increase)/decrease in cash held by CIP
|
39.9
|
|
|
39.9
|
|
|
148.5
|
|
|
148.5
|
|
|
(298.9
|
)
|
|
(298.9
|
)
|
(Increase)/decrease in cash held by CSIP
|
—
|
|
|
(10.5
|
)
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
(10.1
|
)
|
(Purchase)/sale of trading investments, net
|
—
|
|
|
(159.0
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
5.4
|
|
(Increase)/decrease in receivables
|
(17.0
|
)
|
|
(4,489.9
|
)
|
|
(21.4
|
)
|
|
(265.8
|
)
|
|
22.2
|
|
|
(593.1
|
)
|
Increase/(decrease) in payables
|
3.7
|
|
|
4,442.1
|
|
|
(2.3
|
)
|
|
165.9
|
|
|
4.2
|
|
|
654.7
|
|
Net cash provided by/(used in) operating activities
|
23.1
|
|
|
1,053.5
|
|
|
124.3
|
|
|
1,200.4
|
|
|
(284.1
|
)
|
|
780.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of property, equipment and software
|
—
|
|
|
(124.5
|
)
|
|
—
|
|
|
(133.2
|
)
|
|
—
|
|
|
(88.2
|
)
|
Purchase of available-for-sale investments
|
63.3
|
|
|
(44.9
|
)
|
|
88.5
|
|
|
(113.8
|
)
|
|
67.0
|
|
|
(132.3
|
)
|
Sale of available-for-sale investments
|
(62.3
|
)
|
|
51.1
|
|
|
(66.2
|
)
|
|
102.8
|
|
|
(74.7
|
)
|
|
26.9
|
|
Purchase of investments by CIP
|
(4,080.7
|
)
|
|
(4,080.7
|
)
|
|
(5,565.9
|
)
|
|
(5,565.9
|
)
|
|
(4,465.4
|
)
|
|
(4,465.4
|
)
|
Sale of investments by CIP
|
3,543.2
|
|
|
3,543.2
|
|
|
4,022.9
|
|
|
4,022.9
|
|
|
4,440.4
|
|
|
4,440.4
|
|
Purchase of investments by CSIP
|
—
|
|
|
(527.5
|
)
|
|
—
|
|
|
(683.4
|
)
|
|
—
|
|
|
(116.5
|
)
|
Sale of investments by CSIP
|
—
|
|
|
524.2
|
|
|
—
|
|
|
493.6
|
|
|
—
|
|
|
66.9
|
|
Purchase of other investments
|
1.7
|
|
|
(167.8
|
)
|
|
3.7
|
|
|
(123.2
|
)
|
|
0.2
|
|
|
(239.1
|
)
|
Sale of other investments
|
—
|
|
|
111.6
|
|
|
—
|
|
|
73.7
|
|
|
—
|
|
|
94.3
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
(0.5
|
)
|
|
50.5
|
|
|
(3.0
|
)
|
|
38.5
|
|
|
(0.2
|
)
|
|
38.0
|
|
Acquisition earn-out payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
Sale of business
|
—
|
|
|
—
|
|
|
—
|
|
|
60.8
|
|
|
—
|
|
|
137.0
|
|
Net cash provided by/(used in) investing activities
|
(535.3
|
)
|
|
(664.8
|
)
|
|
(1,520.0
|
)
|
|
(1,827.2
|
)
|
|
(32.7
|
)
|
|
(239.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from exercises of share options
|
—
|
|
|
3.7
|
|
|
—
|
|
|
11.0
|
|
|
—
|
|
|
17.9
|
|
Purchases of treasury shares
|
—
|
|
|
(548.8
|
)
|
|
—
|
|
|
(269.6
|
)
|
|
—
|
|
|
(470.5
|
)
|
Dividends paid
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
|
(379.7
|
)
|
Excess tax benefits from share-based compensation
|
—
|
|
|
21.2
|
|
|
—
|
|
|
24.0
|
|
|
—
|
|
|
21.6
|
|
(Repayment)/borrowing of unsettled fund account
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.7
|
)
|
|
—
|
|
|
35.7
|
|
Third-party capital invested into CIP
|
113.5
|
|
|
113.5
|
|
|
287.0
|
|
|
287.0
|
|
|
17.7
|
|
|
17.7
|
|
Third-party capital distributed by CIP
|
(120.0
|
)
|
|
(120.0
|
)
|
|
(165.8
|
)
|
|
(165.8
|
)
|
|
(191.5
|
)
|
|
(191.5
|
)
|
Third-party capital invested into CSIP
|
—
|
|
|
31.2
|
|
|
—
|
|
|
167.1
|
|
|
—
|
|
|
3.9
|
|
Third-party capital distributed by CSIP
|
—
|
|
|
(25.9
|
)
|
|
—
|
|
|
(6.0
|
)
|
|
—
|
|
|
—
|
|
Borrowings of debt of CIP
|
2,091.8
|
|
|
2,091.8
|
|
|
1,996.3
|
|
|
1,996.3
|
|
|
1,365.4
|
|
|
1,365.4
|
|
Repayments of debt of CIP
|
(1,573.1
|
)
|
|
(1,573.1
|
)
|
|
(721.8
|
)
|
|
(721.8
|
)
|
|
(874.8
|
)
|
|
(874.8
|
)
|
Net borrowings/(repayments) under credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(586.5
|
)
|
Proceeds from issuance of senior notes
|
—
|
|
|
495.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
981.5
|
|
Payment of contingent consideration
|
—
|
|
|
(11.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) financing activities
|
512.2
|
|
|
23.3
|
|
|
1,395.7
|
|
|
862.5
|
|
|
316.8
|
|
|
(59.3
|
)
|
Increase/(decrease) in cash and cash equivalents
|
—
|
|
|
412.0
|
|
|
—
|
|
|
235.7
|
|
|
—
|
|
|
481.0
|
|
Foreign exchange movement on cash and cash equivalents
|
—
|
|
|
(74.8
|
)
|
|
—
|
|
|
(52.7
|
)
|
|
—
|
|
|
14.7
|
|
Cash and cash equivalents, beginning of year
|
—
|
|
|
1,514.2
|
|
|
—
|
|
|
1,331.2
|
|
|
—
|
|
|
835.5
|
|
Cash and cash equivalents, end of year
|
—
|
|
|
1,851.4
|
|
|
—
|
|
|
1,514.2
|
|
|
—
|
|
|
1,331.2
|
|
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
||
Floating rate credit facility expiring August 7, 2020
|
—
|
|
|
—
|
|
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
596.1
|
|
|
595.4
|
|
$600 million 4.000% - due January 30, 2024
|
592.7
|
|
|
591.9
|
|
$500 million 3.750% -- due January 15, 2026
|
494.2
|
|
|
—
|
|
$400 million 5.375% - due November 30, 2043
|
389.8
|
|
|
389.5
|
|
Long-term debt
|
2,072.8
|
|
|
1,576.8
|
|
|
Last four quarters ended
|
||||||
$ millions
|
December 31, 2015
|
|
December 31, 2014
|
||||
Net income attributable to Invesco Ltd.
|
968.1
|
|
|
988.1
|
|
||
Net (income)/loss attributable to Invesco Ltd. arising from CIP
|
40.4
|
|
|
(7.8
|
)
|
||
Tax expense
|
398.0
|
|
|
388.7
|
|
||
Amortization/depreciation/impairment
|
93.6
|
|
|
89.4
|
|
||
Interest expense
|
81.7
|
|
|
73.1
|
|
||
Share-based compensation expense
|
150.3
|
|
|
138.0
|
|
||
Unrealized (gains)/losses from investments, net
*
|
(7.5
|
)
|
|
(7.3
|
)
|
||
EBITDA
**
|
1,724.6
|
|
|
1,662.2
|
|
||
Adjusted debt
**
|
|
$2,086.6
|
|
|
|
$1,615.0
|
|
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.21
|
|
|
0.97
|
|
||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
21.11
|
|
|
22.74
|
|
*
|
Adjustments for unrealized gains and losses from investments, as defined in our credit facility, may also 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 Invesco Ltd.) is defined by our credit agreement, and therefore net income attributable to Invesco Ltd. 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
$2,072.8 million
plus
$13.8 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, 2015
, our maximum exposure to credit risk related to our cash and cash equivalent balances is
$1,851.4 million
. See Item 8, Financial Statements and Supplementary Data - Note
21
, “Related Parties,” for information regarding cash and cash equivalents invested in affiliated money market funds.
|
•
|
Certain subsidiaries of the company accept deposits and place deposits with other institutions on behalf of our customers. As of
December 31, 2015
, our exposure to credit risk related to these transactions is
$1.9 million
.
|
$ in millions
|
Total
(4,5,6)
|
|
Within 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than 5 Years
|
|||||
Long-term debt
(1)
|
2,072.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,072.8
|
|
Estimated interest payments on long-term debt
(1)
|
1,129.4
|
|
|
78.3
|
|
|
166.0
|
|
|
166.0
|
|
|
719.1
|
|
Operating leases
(2)
|
459.0
|
|
|
70.5
|
|
|
121.9
|
|
|
112.6
|
|
|
154.0
|
|
Purchase obligations
(3)
|
318.9
|
|
|
116.8
|
|
|
105.2
|
|
|
51.4
|
|
|
45.5
|
|
Total
|
3,980.1
|
|
|
265.6
|
|
|
393.1
|
|
|
330.0
|
|
|
2,991.4
|
|
(1)
|
Long-term debt includes
$2,072.8 million
of fixed rate debt. Fixed interest payments are reflected in the table above in the periods they are due, and include any issuance discounts. The table above includes the company's debt; debt of CIP is excluded from the table above, as the company is not obligated for these amounts. See Item 8, Financial Statements and Supplementary Data - Note
20
, “Consolidated Investment Products," for additional information.
|
(2)
|
Operating leases reflect obligations for leased building space and other assets. See Item 8, Financial Statements and Supplementary Data - Note
13
, “Operating Leases” for sublease information.
|
(3)
|
In the ordinary course of business, Invesco enters into contracts or purchase obligations with third parties whereby the third parties provide services to or on behalf of Invesco. Purchase obligations included in the contractual obligations table above represent fixed-price contracts, which are either non-cancelable or cancelable with a penalty. At
December 31, 2015
, the company's obligations primarily reflect standard service contracts for portfolio, market data, office-related services and third-party marketing and promotional services. In addition, the company is a party to certain variable-price contractual arrangements (e.g. contingent future payments based on AUM levels, number of accounts, transaction volume, etc.) for which the company is reimbursed by affiliated funds and as such are not included in the table above. Purchase obligations are recorded as liabilities in the company's Consolidated Financial Statements when services are provided. Purchase obligations also include contingent consideration liabilities.
|
(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, 2015
, the company's undrawn capital and purchase commitments were
$185.6 million
. These are not included in the above table. See Item 8, Financial Statements and Supplementary Data - Note
18
, “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, 2015
, the company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore,
$9.6 million
of gross unrecognized tax benefits have been excluded from the contractual obligations table above. See Item 8, Financial Statements and Supplementary Data, Note
15
- “Taxation” for a discussion regarding income taxes.
|
(6)
|
In addition to the contractual obligations in the table above, we periodically make contributions to defined benefit pension and postretirement medical plans. For the years ended
December 31, 2015
and
2014
we contributed
$15.2 million
and
$15.9 million
, respectively, to these plans. In 2016, we expect to contribute
$15.5 million
to our defined benefit pension plans and
none
to our postretirement medical plan. See Item 8, Financial Statements and Supplementary Data - Note
12
, “Retirement Benefit Plans” for detailed benefit pension and postretirement plan information. The company has various other compensation and benefit obligations, including bonuses, commissions and incentive payments payable, defined contribution plan matching contribution obligations, and deferred compensation arrangements, that are excluded from the table above.
|
•
|
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.
|
|
December 31, 2015
|
|||||||
$ in millions
|
Fair Value
|
|
Fair Value assuming 10% increase
|
|
Fair Value assuming 10% decrease
|
|||
Available-for-sale investments
(a)
|
233.2
|
|
|
256.5
|
|
|
209.9
|
|
Trading investments
(b)
|
402.7
|
|
|
443.0
|
|
|
362.4
|
|
Total assets measured at fair value exposed to market risk
|
635.9
|
|
|
699.5
|
|
|
572.3
|
|
|
|
|
|
|
|
|||
Direct investments in CSIP and CIP
(c)
|
180.0
|
|
|
198.0
|
|
|
162.0
|
|
|
|
|
|
|
|
|||
Contingent consideration liability
(d)
|
(83.9
|
)
|
|
(91.0
|
)
|
|
(76.1
|
)
|
a.
|
Any gains or losses arising from changes in the fair value of available-for-sale investments are recognized in accumulated other comprehensive income, net of tax, until the investment is sold or otherwise disposed of, or if the investment is determined to be other-than-temporarily impaired, at which time the cumulative gain or loss previously reported in equity is included in income. The company evaluates the carrying value of investments for impairment on a quarterly basis. In its impairment analysis, the company takes into consideration numerous criteria, including the duration and extent of any decline in fair value, and the intent and ability of the company to hold the security for a period of time sufficient for a recovery in value. If the decline in value is determined to be other-than-temporary, the carrying value of the security is generally written down to fair value through the Consolidated Statement of Income. If such a 10% increase or decrease in fair values were to occur, it would not result in an other-than-temporary impairment charge that would be material to our pre-tax earnings.
|
b.
|
If such a 10% increase or decrease in fair values were to occur, the change attributable to
$402.7 million
of these trading investments would result in a corresponding increase or decrease in our pre-tax earnings. At
December 31, 2015
,
$158.8
|
c.
|
These represent Invesco’s direct investments in investment products that are consolidated. Upon consolidation, these direct investments are eliminated, and the assets and liabilities of the CIP and CSIP are consolidated in the Consolidated Balance Sheet, together with a noncontrolling interest balance representing the portion of the CIP and CSIP owned by third parties. If a 10% increase or decrease in the fair values of Invesco’s direct investments in CIP and CSIP were to occur, it would result in a corresponding increase or decrease in our net income attributable to Invesco Ltd.
|
d.
|
During the first quarter of 2015, the company acquired investment management contracts from Deutsche Bank. This liability represents the purchase price, which was comprised solely of contingent consideration payable in future periods and is linked to future revenues generated from the contracts. The contingent consideration liability was recorded at fair value at the acquisition date and subsequent changes in the fair value are recorded in Other gains and losses, net in the Consolidated Statements of Income. If a 10% increase or decrease in the fair value of the contingent consideration liability were to occur, it would result in a corresponding increase or decrease in our net income attributable to Invesco Ltd.
|
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
||
Long-term debt
|
|
|
|
||
Fixed rate
|
2,072.8
|
|
|
1,576.8
|
|
Floating rate
|
—
|
|
|
—
|
|
Total
|
2,072.8
|
|
|
1,576.8
|
|
|
|
|
|
||
Weighted average interest rate percentage
|
4.0
|
%
|
|
4.0
|
%
|
Weighted average period for which rate is fixed in years
|
12.0
|
|
|
13.6
|
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||||
$ in millions, except per share data
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
||||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees
|
987.1
|
|
|
1,016.9
|
|
|
1,055.7
|
|
|
1,001.4
|
|
|
1,009.5
|
|
|
1,047.3
|
|
|
1,031.9
|
|
|
965.4
|
|
||||||||
Service and distribution fees
|
207.6
|
|
|
214.8
|
|
|
219.6
|
|
|
213.4
|
|
|
217.7
|
|
|
222.1
|
|
|
214.7
|
|
|
238.6
|
|
||||||||
Performance fees
|
16.8
|
|
|
15.6
|
|
|
6.7
|
|
|
46.8
|
|
|
16.8
|
|
|
8.2
|
|
|
5.0
|
|
|
31.1
|
|
||||||||
Other
|
28.2
|
|
|
26.2
|
|
|
36.1
|
|
|
30.0
|
|
|
32.7
|
|
|
33.4
|
|
|
38.3
|
|
|
34.4
|
|
||||||||
Total operating revenues
|
1,239.7
|
|
|
1,273.5
|
|
|
1,318.1
|
|
|
1,291.6
|
|
|
1,276.7
|
|
|
1,311.0
|
|
|
1,289.9
|
|
|
1,269.5
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Employee compensation
|
349.8
|
|
|
337.6
|
|
|
347.2
|
|
|
360.9
|
|
|
345.7
|
|
|
343.8
|
|
|
342.9
|
|
|
362.1
|
|
||||||||
Third-party distribution, service and advisory
|
375.2
|
|
|
392.3
|
|
|
413.3
|
|
|
399.1
|
|
|
394.5
|
|
|
420.2
|
|
|
410.6
|
|
|
405.4
|
|
||||||||
Marketing
|
34.1
|
|
|
24.9
|
|
|
29.7
|
|
|
26.7
|
|
|
31.9
|
|
|
26.6
|
|
|
30.2
|
|
|
23.4
|
|
||||||||
Property, office and technology
|
81.3
|
|
|
79.0
|
|
|
74.8
|
|
|
76.9
|
|
|
72.0
|
|
|
76.4
|
|
|
75.3
|
|
|
112.7
|
|
||||||||
General and administrative
|
95.7
|
|
|
87.0
|
|
|
89.1
|
|
|
89.9
|
|
|
84.4
|
|
|
114.4
|
|
|
76.1
|
|
|
121.6
|
|
||||||||
Total operating expenses
|
936.1
|
|
|
920.8
|
|
|
954.1
|
|
|
953.5
|
|
|
928.5
|
|
|
981.4
|
|
|
935.1
|
|
|
1,025.2
|
|
||||||||
Operating income
|
303.6
|
|
|
352.7
|
|
|
364.0
|
|
|
338.1
|
|
|
348.2
|
|
|
329.6
|
|
|
354.8
|
|
|
244.3
|
|
||||||||
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity in earnings of unconsolidated affiliates
|
3.1
|
|
|
8.2
|
|
|
12.0
|
|
|
11.8
|
|
|
6.4
|
|
|
10.9
|
|
|
5.5
|
|
|
10.0
|
|
||||||||
Interest and dividend income
|
5.5
|
|
|
2.4
|
|
|
2.6
|
|
|
2.5
|
|
|
4.5
|
|
|
2.6
|
|
|
3.1
|
|
|
2.9
|
|
||||||||
Interest expense
|
(23.0
|
)
|
|
(20.4
|
)
|
|
(19.6
|
)
|
|
(18.7
|
)
|
|
(18.1
|
)
|
|
(18.1
|
)
|
|
(18.2
|
)
|
|
(18.7
|
)
|
||||||||
Other gains and losses, net
|
3.7
|
|
|
0.9
|
|
|
(8.8
|
)
|
|
2.7
|
|
|
6.6
|
|
|
(1.3
|
)
|
|
16.2
|
|
|
6.6
|
|
||||||||
Other income/(expense) of CSIP, net
|
0.8
|
|
|
(3.6
|
)
|
|
5.1
|
|
|
9.4
|
|
|
1.0
|
|
|
7.4
|
|
|
7.7
|
|
|
8.2
|
|
||||||||
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest and dividend income of CIP
|
63.0
|
|
|
64.7
|
|
|
65.1
|
|
|
60.2
|
|
|
56.8
|
|
|
53.4
|
|
|
48.0
|
|
|
48.3
|
|
||||||||
Interest expense of CIP
|
(50.6
|
)
|
|
(45.9
|
)
|
|
(47.3
|
)
|
|
(45.1
|
)
|
|
(35.8
|
)
|
|
(37.5
|
)
|
|
(30.3
|
)
|
|
(30.3
|
)
|
||||||||
Other gains/(losses) of CIP, net
|
(24.4
|
)
|
|
(17.3
|
)
|
|
(19.7
|
)
|
|
24.4
|
|
|
(43.0
|
)
|
|
0.1
|
|
|
36.8
|
|
|
26.5
|
|
||||||||
Income from continuing operations before income taxes
|
281.7
|
|
|
341.7
|
|
|
353.4
|
|
|
385.3
|
|
|
326.6
|
|
|
347.1
|
|
|
423.6
|
|
|
297.8
|
|
||||||||
Income tax provision
|
(86.9
|
)
|
|
(100.4
|
)
|
|
(109.4
|
)
|
|
(101.3
|
)
|
|
(99.7
|
)
|
|
(94.9
|
)
|
|
(107.0
|
)
|
|
(89.0
|
)
|
||||||||
Income from continuing operations, net of taxes
|
194.8
|
|
|
241.3
|
|
|
244.0
|
|
|
284.0
|
|
|
226.9
|
|
|
252.2
|
|
|
316.6
|
|
|
208.8
|
|
||||||||
Income from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
(0.6
|
)
|
|
0.2
|
|
|
(2.0
|
)
|
||||||||
Net income
|
194.8
|
|
|
241.3
|
|
|
244.0
|
|
|
284.0
|
|
|
225.9
|
|
|
251.6
|
|
|
316.8
|
|
|
206.8
|
|
||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities, net
|
7.1
|
|
|
8.0
|
|
|
13.3
|
|
|
(24.4
|
)
|
|
43.9
|
|
|
4.4
|
|
|
(42.3
|
)
|
|
(19.0
|
)
|
||||||||
Net income attributable to Invesco Ltd.
|
201.9
|
|
|
249.3
|
|
|
257.3
|
|
|
259.6
|
|
|
269.8
|
|
|
256.0
|
|
|
274.5
|
|
|
187.8
|
|
||||||||
Earnings per share*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings per share from continuing operations
|
|
$0.48
|
|
|
|
$0.58
|
|
|
|
$0.60
|
|
|
|
$0.60
|
|
|
|
$0.63
|
|
|
|
$0.59
|
|
|
|
$0.63
|
|
|
|
$0.43
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
Basic earnings per share
|
|
$0.48
|
|
|
|
$0.58
|
|
|
|
$0.60
|
|
|
|
$0.60
|
|
|
|
$0.62
|
|
|
|
$0.59
|
|
|
|
$0.63
|
|
|
|
$0.43
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings per share from continuing operations
|
|
$0.48
|
|
|
|
$0.58
|
|
|
|
$0.60
|
|
|
|
$0.60
|
|
|
|
$0.62
|
|
|
|
$0.59
|
|
|
|
$0.63
|
|
|
|
$0.43
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
Diluted earnings per share
|
|
$0.48
|
|
|
|
$0.58
|
|
|
|
$0.60
|
|
|
|
$0.60
|
|
|
|
$0.62
|
|
|
|
$0.59
|
|
|
|
$0.63
|
|
|
|
$0.43
|
|
Average shares outstanding*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
- basic
|
422.9
|
|
|
428.8
|
|
|
431.9
|
|
|
432.2
|
|
|
433.2
|
|
|
434.3
|
|
|
435.7
|
|
|
436.8
|
|
||||||||
- diluted
|
423.2
|
|
|
429.1
|
|
|
432.2
|
|
|
432.5
|
|
|
433.6
|
|
|
434.8
|
|
|
436.4
|
|
|
437.4
|
|
||||||||
Dividends declared per share:
|
|
$0.2700
|
|
|
|
$0.2700
|
|
|
|
$0.2700
|
|
|
|
$0.2500
|
|
|
|
$0.2500
|
|
|
|
$0.2500
|
|
|
|
$0.2500
|
|
|
|
$0.2250
|
|
*
|
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, 2015
|
|
December 31, 2014
|
||
ASSETS
|
|
|
|
||
Cash and cash equivalents
|
1,851.4
|
|
|
1,514.2
|
|
Unsettled fund receivables
|
566.3
|
|
|
732.4
|
|
Accounts receivable
|
528.1
|
|
|
545.9
|
|
Investments
|
1,019.1
|
|
|
885.4
|
|
Assets of consolidated sponsored investment products (CSIP)
|
319.1
|
|
|
305.8
|
|
Assets of consolidated investment products (CIP):
|
|
|
|
||
Cash and cash equivalents of CIP
|
363.3
|
|
|
404.0
|
|
Accounts receivable and other assets of CIP
|
173.5
|
|
|
161.3
|
|
Investments of CIP
|
6,016.1
|
|
|
5,762.8
|
|
Assets held for policyholders
|
6,051.5
|
|
|
1,697.9
|
|
Prepaid assets
|
121.2
|
|
|
132.1
|
|
Other assets
|
107.0
|
|
|
79.5
|
|
Property, equipment and software, net
|
426.9
|
|
|
402.6
|
|
Intangible assets, net
|
1,354.0
|
|
|
1,246.7
|
|
Goodwill
|
6,175.7
|
|
|
6,579.4
|
|
Total assets
|
25,073.2
|
|
|
20,450.0
|
|
LIABILITIES
|
|
|
|
||
Accrued compensation and benefits
|
661.3
|
|
|
667.3
|
|
Accounts payable and accrued expenses
|
863.1
|
|
|
757.3
|
|
Liabilities of CIP:
|
|
|
|
||
Debt of CIP
|
5,437.0
|
|
|
5,149.6
|
|
Other liabilities of CIP
|
273.7
|
|
|
280.9
|
|
Policyholder payables
|
6,051.5
|
|
|
1,697.9
|
|
Unsettled fund payables
|
561.9
|
|
|
730.1
|
|
Long-term debt
|
2,072.8
|
|
|
1,576.8
|
|
Deferred tax liabilities, net
|
288.9
|
|
|
304.8
|
|
Total liabilities
|
16,210.2
|
|
|
11,164.7
|
|
Commitments and contingencies (See Note 18)
|
|
|
|
|
|
TEMPORARY EQUITY
|
|
|
|
||
Redeemable noncontrolling interests in CSIP
|
167.3
|
|
|
165.5
|
|
PERMANENT EQUITY
|
|
|
|
||
Equity attributable to Invesco Ltd.:
|
|
|
|
||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of December 31, 2015, and 2014)
|
98.1
|
|
|
98.1
|
|
Additional paid-in-capital
|
6,197.7
|
|
|
6,133.6
|
|
Treasury shares
|
(2,404.1
|
)
|
|
(1,898.1
|
)
|
Retained earnings
|
4,439.6
|
|
|
3,926.0
|
|
Retained earnings appropriated for investors in CIP
|
—
|
|
|
17.6
|
|
Accumulated other comprehensive income, net of tax
|
(446.0
|
)
|
|
48.8
|
|
Total equity attributable to Invesco Ltd.
|
7,885.3
|
|
|
8,326.0
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
810.4
|
|
|
793.8
|
|
Total permanent equity
|
8,695.7
|
|
|
9,119.8
|
|
Total liabilities, temporary and permanent equity
|
25,073.2
|
|
|
20,450.0
|
|
|
Years ended December 31,
|
||||||||||
$ in millions, except per share data
|
2015
|
|
2014
|
|
2013
|
||||||
Operating revenues:
|
|
|
|
|
|
||||||
Investment management fees
|
4,061.1
|
|
|
4,054.1
|
|
|
3,599.6
|
|
|||
Service and distribution fees
|
855.4
|
|
|
893.1
|
|
|
872.8
|
|
|||
Performance fees
|
85.9
|
|
|
61.1
|
|
|
55.9
|
|
|||
Other
|
120.5
|
|
|
138.8
|
|
|
116.3
|
|
|||
Total operating revenues
|
5,122.9
|
|
|
5,147.1
|
|
|
4,644.6
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Employee compensation
|
1,395.5
|
|
|
1,394.5
|
|
|
1,329.3
|
|
|||
Third-party distribution, service and advisory
|
1,579.9
|
|
|
1,630.7
|
|
|
1,489.2
|
|
|||
Marketing
|
115.4
|
|
|
112.1
|
|
|
98.6
|
|
|||
Property, office and technology
|
312.0
|
|
|
336.4
|
|
|
292.8
|
|
|||
General and administrative
|
361.7
|
|
|
396.5
|
|
|
311.3
|
|
|||
Transaction and integration
|
—
|
|
|
—
|
|
|
3.2
|
|
|||
Total operating expenses
|
3,764.5
|
|
|
3,870.2
|
|
|
3,524.4
|
|
|||
Operating income
|
1,358.4
|
|
|
1,276.9
|
|
|
1,120.2
|
|
|||
Other income/(expense):
|
|
|
|
|
|
||||||
Equity in earnings of unconsolidated affiliates
|
35.1
|
|
|
32.8
|
|
|
35.5
|
|
|||
Interest and dividend income
|
13.0
|
|
|
13.1
|
|
|
10.0
|
|
|||
Interest expense
|
(81.7
|
)
|
|
(73.1
|
)
|
|
(44.6
|
)
|
|||
Other gains and losses, net
|
(1.5
|
)
|
|
28.1
|
|
|
2.6
|
|
|||
Other income/(expense) of CSIP, net
|
11.7
|
|
|
24.3
|
|
|
2.9
|
|
|||
CIP:
|
|
|
|
|
|
||||||
Interest and dividend income of CIP
|
253.0
|
|
|
206.5
|
|
|
190.0
|
|
|||
Interest expense of CIP
|
(188.9
|
)
|
|
(133.9
|
)
|
|
(123.3
|
)
|
|||
Other gains/(losses) of CIP, net
|
(37.0
|
)
|
|
20.4
|
|
|
61.9
|
|
|||
Income from continuing operations before income taxes
|
1,362.1
|
|
|
1,395.1
|
|
|
1,255.2
|
|
|||
Income tax provision
|
(398.0
|
)
|
|
(390.6
|
)
|
|
(336.9
|
)
|
|||
Income from continuing operations, net of taxes
|
964.1
|
|
|
1,004.5
|
|
|
918.3
|
|
|||
Income/(loss) from discontinued operations, net of taxes
|
—
|
|
|
(3.4
|
)
|
|
64.5
|
|
|||
Net income
|
964.1
|
|
|
1,001.1
|
|
|
982.8
|
|
|||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
4.0
|
|
|
(13.0
|
)
|
|
(42.5
|
)
|
|||
Net income attributable to Invesco Ltd.
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
|||
Earnings per share:
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
|
$2.26
|
|
|
|
$2.28
|
|
|
|
$1.96
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
($0.01
|
)
|
|
|
$0.14
|
|
Basic earnings per share
|
|
$2.26
|
|
|
|
$2.27
|
|
|
|
$2.10
|
|
Diluted:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
|
$2.26
|
|
|
|
$2.28
|
|
|
|
$1.95
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
($0.01
|
)
|
|
|
$0.14
|
|
Diluted earnings per share
|
|
$2.26
|
|
|
|
$2.27
|
|
|
|
$2.10
|
|
Dividends declared per share
|
|
$1.0600
|
|
|
|
$0.9750
|
|
|
|
$0.8475
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|||
Net income
|
964.1
|
|
|
1,001.1
|
|
|
982.8
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(493.9
|
)
|
|
(364.4
|
)
|
|
(122.3
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
11.1
|
|
|
(26.0
|
)
|
|
1.2
|
|
Prior service credit related to employee benefit plans
|
—
|
|
|
14.9
|
|
|
—
|
|
Reclassification of amortization of prior service costs/(credit) into employee compensation expense, net of tax
|
(7.2
|
)
|
|
(4.1
|
)
|
|
(1.5
|
)
|
Reclassification of amortization of actuarial (gains)/losses into employee compensation expense, net of tax
|
2.2
|
|
|
1.4
|
|
|
1.8
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
(0.6
|
)
|
|
8.3
|
|
|
(3.9
|
)
|
Unrealized (losses)/gains on available-for-sale investments
|
(6.0
|
)
|
|
7.7
|
|
|
13.1
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net
|
(0.4
|
)
|
|
(16.9
|
)
|
|
(4.1
|
)
|
Other comprehensive income/(loss), before tax
|
(494.8
|
)
|
|
(379.1
|
)
|
|
(115.7
|
)
|
Total comprehensive income/(loss)
|
469.3
|
|
|
622.0
|
|
|
867.1
|
|
Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities
|
4.0
|
|
|
(13.0
|
)
|
|
(29.4
|
)
|
Comprehensive income attributable to Invesco Ltd.
|
473.3
|
|
|
609.0
|
|
|
837.7
|
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|||
Operating activities:
|
|
|
|
|
|
|||
Net income
|
964.1
|
|
|
1,001.1
|
|
|
982.8
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|||
Amortization and depreciation
|
93.6
|
|
|
89.4
|
|
|
88.4
|
|
Share-based compensation expense
|
150.3
|
|
|
138.0
|
|
|
133.1
|
|
(Gain)/loss on disposal of business, property and equipment, net
|
—
|
|
|
—
|
|
|
(64.8
|
)
|
Other gains and losses, net
|
1.5
|
|
|
(28.1
|
)
|
|
(34.4
|
)
|
Other (gains)/losses of CSIP, net
|
0.8
|
|
|
(13.6
|
)
|
|
(2.0
|
)
|
Other (gains)/losses of CIP, net
|
37.0
|
|
|
(20.4
|
)
|
|
(61.9
|
)
|
Equity in earnings of unconsolidated affiliates
|
(35.1
|
)
|
|
(32.8
|
)
|
|
(35.5
|
)
|
Dividends from unconsolidated affiliates
|
18.7
|
|
|
19.6
|
|
|
16.5
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|||
(Increase)/decrease in cash held by CIP
|
39.9
|
|
|
148.5
|
|
|
(298.9
|
)
|
(Increase)/decrease in cash held by CSIP
|
(10.5
|
)
|
|
1.3
|
|
|
(10.1
|
)
|
(Purchase)/sale of trading investments, net
|
(159.0
|
)
|
|
(2.7
|
)
|
|
5.4
|
|
(Increase)/decrease in receivables
|
(4,489.9
|
)
|
|
(265.8
|
)
|
|
(593.1
|
)
|
Increase/(decrease) in payables
|
4,442.1
|
|
|
165.9
|
|
|
654.7
|
|
Net cash provided by/(used in) operating activities
|
1,053.5
|
|
|
1,200.4
|
|
|
780.2
|
|
Investing activities:
|
|
|
|
|
|
|||
Purchase of property, equipment and software
|
(124.5
|
)
|
|
(133.2
|
)
|
|
(88.2
|
)
|
Purchase of available-for-sale investments
|
(44.9
|
)
|
|
(113.8
|
)
|
|
(132.3
|
)
|
Sale of available-for-sale investments
|
51.1
|
|
|
102.8
|
|
|
26.9
|
|
Purchase of investments by CIP
|
(4,080.7
|
)
|
|
(5,565.9
|
)
|
|
(4,465.4
|
)
|
Sale of investments by CIP
|
3,543.2
|
|
|
4,022.9
|
|
|
4,440.4
|
|
Purchase of investments by CSIP
|
(527.5
|
)
|
|
(683.4
|
)
|
|
(116.5
|
)
|
Sale of investments by CSIP
|
524.2
|
|
|
493.6
|
|
|
66.9
|
|
Purchase of other investments
|
(167.8
|
)
|
|
(123.2
|
)
|
|
(239.1
|
)
|
Sale of other investments
|
111.6
|
|
|
73.7
|
|
|
94.3
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
50.5
|
|
|
38.5
|
|
|
38.0
|
|
Acquisition earn-out payments
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
Sale of business
|
—
|
|
|
60.8
|
|
|
137.0
|
|
Net cash provided by/(used in) investing activities
|
(664.8
|
)
|
|
(1,827.2
|
)
|
|
(239.9
|
)
|
Financing activities:
|
|
|
|
|
|
|||
Proceeds from exercises of share options
|
3.7
|
|
|
11.0
|
|
|
17.9
|
|
Purchases of treasury shares
|
(548.8
|
)
|
|
(269.6
|
)
|
|
(470.5
|
)
|
Dividends paid
|
(454.5
|
)
|
|
(424.0
|
)
|
|
(379.7
|
)
|
Excess tax benefits from share-based compensation
|
21.2
|
|
|
24.0
|
|
|
21.6
|
|
(Repayment)/borrowing of unsettled fund account
|
—
|
|
|
(35.7
|
)
|
|
35.7
|
|
Third-party capital invested into CIP
|
113.5
|
|
|
287.0
|
|
|
17.7
|
|
Third-party capital distributed by CIP
|
(120.0
|
)
|
|
(165.8
|
)
|
|
(191.5
|
)
|
Third-party capital invested into CSIP
|
31.2
|
|
|
167.1
|
|
|
3.9
|
|
Third-party capital distributed by CSIP
|
(25.9
|
)
|
|
(6.0
|
)
|
|
—
|
|
Borrowings of debt of CIP
|
2,091.8
|
|
|
1,996.3
|
|
|
1,365.4
|
|
Repayments of debt of CIP
|
(1,573.1
|
)
|
|
(721.8
|
)
|
|
(874.8
|
)
|
Net borrowings/(repayments) under credit facility
|
—
|
|
|
—
|
|
|
(586.5
|
)
|
Proceeds from issuance of senior notes
|
495.5
|
|
|
—
|
|
|
981.5
|
|
Payment of contingent consideration
|
(11.3
|
)
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) financing activities
|
23.3
|
|
|
862.5
|
|
|
(59.3
|
)
|
Increase/(decrease) in cash and cash equivalents
|
412.0
|
|
|
235.7
|
|
|
481.0
|
|
Foreign exchange movement on cash and cash equivalents
|
(74.8
|
)
|
|
(52.7
|
)
|
|
14.7
|
|
Cash and cash equivalents, beginning of year
|
1,514.2
|
|
|
1,331.2
|
|
|
835.5
|
|
Cash and cash equivalents, end of year
|
1,851.4
|
|
|
1,514.2
|
|
|
1,331.2
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|||
Interest paid
|
(67.5
|
)
|
|
(60.7
|
)
|
|
(32.4
|
)
|
Interest received
|
8.8
|
|
|
8.1
|
|
|
5.4
|
|
Taxes paid
|
(388.7
|
)
|
|
(405.6
|
)
|
|
(268.9
|
)
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in CIP
|
|
Accumulated Other Comprehensive Income
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|
Redeemable Noncontrolling Interests in CSIP/Temporary Equity
|
||||||||||
January 1, 2015
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
17.6
|
|
|
48.8
|
|
|
8,326.0
|
|
|
793.8
|
|
|
9,119.8
|
|
|
165.5
|
|
Adjustment for adoption of ASU 2014-13
|
|
|
|
|
|
|
|
|
(17.6
|
)
|
|
|
|
(17.6
|
)
|
|
|
|
(17.6
|
)
|
|
|
|||||||
January 1, 2015, as adjusted
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
—
|
|
|
48.8
|
|
|
8,308.4
|
|
|
793.8
|
|
|
9,102.2
|
|
|
165.5
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
968.1
|
|
|
—
|
|
|
—
|
|
|
968.1
|
|
|
(2.9
|
)
|
|
965.2
|
|
|
(1.1
|
)
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(494.8
|
)
|
|
(494.8
|
)
|
|
—
|
|
|
(494.8
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.5
|
|
|
19.5
|
|
|
2.9
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
|
(454.5
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Share-based compensation
|
—
|
|
|
150.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150.3
|
|
|
—
|
|
|
150.3
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(109.2
|
)
|
|
109.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(2.1
|
)
|
|
5.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
Other share awards
|
—
|
|
|
2.7
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
21.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|
—
|
|
|
21.2
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
1.2
|
|
|
(624.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(623.7
|
)
|
|
—
|
|
|
(623.7
|
)
|
|
—
|
|
December 31, 2015
|
98.1
|
|
|
6,197.7
|
|
|
(2,404.1
|
)
|
|
4,439.6
|
|
|
—
|
|
|
(446.0
|
)
|
|
7,885.3
|
|
|
810.4
|
|
|
8,695.7
|
|
|
167.3
|
|
|
Equity attributable to Invesco Ltd.
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in CIP
|
|
Accumulated Other Comprehensive Income
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|
Redeemable Noncontrolling Interests in CSIP/Temporary Equity
|
||||||||||
January 1, 2014
|
98.1
|
|
|
6,100.8
|
|
|
(1,700.4
|
)
|
|
3,361.9
|
|
|
104.3
|
|
|
427.9
|
|
|
8,392.6
|
|
|
584.7
|
|
|
8,977.3
|
|
|
—
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
988.1
|
|
|
—
|
|
|
—
|
|
|
988.1
|
|
|
6.4
|
|
|
994.5
|
|
|
6.6
|
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(379.1
|
)
|
|
(379.1
|
)
|
|
—
|
|
|
(379.1
|
)
|
|
—
|
|
Net income (loss) reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85.7
|
)
|
|
—
|
|
|
(85.7
|
)
|
|
85.7
|
|
|
—
|
|
|
—
|
|
Deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117.0
|
|
|
117.0
|
|
|
158.9
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
|
(424.0
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Share-based compensation
|
—
|
|
|
138.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138.0
|
|
|
—
|
|
|
138.0
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(123.3
|
)
|
|
123.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(8.1
|
)
|
|
19.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.0
|
|
|
—
|
|
|
11.0
|
|
|
—
|
|
Settlement of ESPP purchases
|
—
|
|
|
2.2
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
24.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.0
|
|
|
—
|
|
|
24.0
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(342.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(342.9
|
)
|
|
—
|
|
|
(342.9
|
)
|
|
—
|
|
December 31, 2014
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
17.6
|
|
|
48.8
|
|
|
8,326.0
|
|
|
793.8
|
|
|
9,119.8
|
|
|
165.5
|
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Common Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in CIP
|
|
Accumulated Other Comprehensive Income
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|||||||||
January 1, 2013
|
98.1
|
|
|
6,141.0
|
|
|
(1,382.9
|
)
|
|
2,801.3
|
|
|
128.8
|
|
|
530.5
|
|
|
8,316.8
|
|
|
732.2
|
|
|
9,049.0
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
940.3
|
|
|
—
|
|
|
—
|
|
|
940.3
|
|
|
42.5
|
|
|
982.8
|
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(102.6
|
)
|
|
(102.6
|
)
|
|
(13.1
|
)
|
|
(115.7
|
)
|
Net income (loss) reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
1.4
|
|
|
—
|
|
Deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.1
|
)
|
|
—
|
|
|
(23.1
|
)
|
|
(27.7
|
)
|
|
(50.8
|
)
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150.6
|
)
|
|
(150.6
|
)
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(379.7
|
)
|
|
—
|
|
|
—
|
|
|
(379.7
|
)
|
|
—
|
|
|
(379.7
|
)
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
133.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133.1
|
|
|
—
|
|
|
133.1
|
|
Vested shares
|
—
|
|
|
(175.7
|
)
|
|
175.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(20.3
|
)
|
|
38.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.9
|
|
|
—
|
|
|
17.9
|
|
Settlement of ESPP purchases
|
—
|
|
|
1.1
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
Tax impact of share-based payment
|
—
|
|
|
21.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.6
|
|
|
—
|
|
|
21.6
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(535.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(535.4
|
)
|
|
—
|
|
|
(535.4
|
)
|
December 31, 2013
|
98.1
|
|
|
6,100.8
|
|
|
(1,700.4
|
)
|
|
3,361.9
|
|
|
104.3
|
|
|
427.9
|
|
|
8,392.6
|
|
|
584.7
|
|
|
8,977.3
|
|
•
|
For all VIE investment products except CLOs, if the company is deemed to have the majority of rewards/risks of ownership associated with, these funds, then the company is deemed to be their primary beneficiary and is required to consolidate these funds. For those private equity funds, real estate funds and fund-of-funds that are determined to be VIEs, the company evaluates the structure of each partnership to determine if it is the primary beneficiary of the fund. This evaluation includes assessing the rights of the limited partners to transfer their economic interests in the investment product. If the limited partners' lack rights to manage their economic interests, they are considered to be de facto agents of the company, resulting in the company determining that it is the primary beneficiary of the investment product.
|
•
|
For VIE CLOs, if the company is deemed to have the power to direct the activities of the CLO that most significantly impact the CLO's economic performance, and the obligation to absorb losses/right to receive benefits from the CLO that could potentially be significant to the CLO, then the company is deemed to be the CLO's primary beneficiary and is required to consolidate the CLO.
|
•
|
Non-VIE general partnership investments are deemed to be controlled by the company and are consolidated under a VOE model, unless the limited partners have the substantive ability to remove the general partner without cause based upon a simple majority vote or can otherwise dissolve the partnership, or unless the limited partners have substantive participating rights over decision-making. The company also consolidates certain non-VIE managed investment products in which the company has a controlling interest under a VOE model, which, as discussed above, may arise as a result of a seed investment in a newly launched investment product.
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
1
|
|
1,851.4
|
|
|
1,851.4
|
|
|
1,514.2
|
|
|
1,514.2
|
|
Available-for-sale investments
|
3
|
|
233.2
|
|
|
233.2
|
|
|
255.9
|
|
|
255.9
|
|
Trading investments
|
3
|
|
402.7
|
|
|
402.7
|
|
|
263.2
|
|
|
263.2
|
|
Foreign time deposits
*
|
3
|
|
24.7
|
|
|
24.7
|
|
|
29.6
|
|
|
29.6
|
|
Assets held for policyholders
|
1
|
|
6,051.5
|
|
|
6,051.5
|
|
|
1,697.9
|
|
|
1,697.9
|
|
Policyholder payables *
|
1
|
|
(6,051.5
|
)
|
|
(6,051.5
|
)
|
|
(1,697.9
|
)
|
|
(1,697.9
|
)
|
Put option contracts
|
|
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
UIT-related financial instruments sold, not yet purchased
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
|
(1.4
|
)
|
|
(1.4
|
)
|
Contingent consideration liability
|
|
|
(83.9
|
)
|
|
(83.9
|
)
|
|
—
|
|
|
—
|
|
Long-term debt
*
|
8
|
|
(2,072.8
|
)
|
|
(2,161.3
|
)
|
|
(1,576.8
|
)
|
|
(1,695.8
|
)
|
*
|
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, and are accordingly classified as Level 2 securities.
|
•
|
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.
|
|
As of December 31, 2015
|
||||||||||
$ 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:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
383.3
|
|
|
383.3
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
225.9
|
|
|
225.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Other debt securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
158.8
|
|
|
158.8
|
|
|
—
|
|
|
—
|
|
Seed money
|
191.2
|
|
|
191.2
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
48.1
|
|
|
48.1
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.8
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
UITs
|
1.5
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Assets held for policyholders
|
6,051.5
|
|
|
6,051.5
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Total
|
7,072.1
|
|
|
7,062.1
|
|
|
2.7
|
|
|
7.3
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(2.5
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(83.9
|
)
|
|
—
|
|
|
—
|
|
|
(83.9
|
)
|
Total
|
(86.4
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
(83.9
|
)
|
*
|
Foreign time deposits of
$24.7 million
are excluded from this table. Equity and other investments of
$352.8 million
and
$5.7 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, 2014
|
||||||||||
$ 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:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
474.9
|
|
|
474.9
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
246.2
|
|
|
246.2
|
|
|
—
|
|
|
—
|
|
CLOs
|
3.4
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
Other debt securities
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
162.6
|
|
|
162.6
|
|
|
—
|
|
|
—
|
|
Seed money
|
68.2
|
|
|
68.2
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
29.0
|
|
|
29.0
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
UITs
|
1.6
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
Assets held for policyholders
|
1,697.9
|
|
|
1,697.9
|
|
|
—
|
|
|
—
|
|
Total
|
2,691.9
|
|
|
2,681.8
|
|
|
0.4
|
|
|
9.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate equities
|
(1.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
Total
|
(1.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
*
|
Foreign time deposits of
$29.6 million
are excluded from this table. Equity and other investments of
$332.1 million
and
$4.6 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, 2015
|
|
For the year ended December 31, 2014
|
||||||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|
CLOs
|
|
Other Debt Securities
|
|
Note Payable
|
||||||
Beginning balance
|
—
|
|
|
3.4
|
|
|
6.3
|
|
|
4.0
|
|
|
6.3
|
|
|
(0.3
|
)
|
Purchases/acquisitions
|
(119.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Returns of capital
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in other gains and losses*
|
27.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
Disposition/settlements
|
8.3
|
|
|
(2.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Ending balance
|
(83.9
|
)
|
|
1.4
|
|
|
5.9
|
|
|
3.4
|
|
|
6.3
|
|
|
—
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective year ends.
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||
$ 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
|
|||||||||
Seed money
|
48.1
|
|
|
2.2
|
|
|
(0.2
|
)
|
|
102.5
|
|
|
13.0
|
|
|
(0.2
|
)
|
|
26.7
|
|
|
3.6
|
|
|
(0.4
|
)
|
CLOs
|
2.6
|
|
|
0.5
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Other debt securities
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51.1
|
|
|
2.7
|
|
|
(0.2
|
)
|
|
102.8
|
|
|
13.0
|
|
|
(0.2
|
)
|
|
26.9
|
|
|
3.6
|
|
|
(0.4
|
)
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
$ in millions
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
||||||||
Seed money
|
227.6
|
|
|
7.6
|
|
|
(9.3
|
)
|
|
225.9
|
|
|
237.7
|
|
|
12.8
|
|
|
(4.3
|
)
|
|
246.2
|
|
CLOs
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
|
3.5
|
|
|
—
|
|
|
(0.1
|
)
|
|
3.4
|
|
Other debt securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
234.8
|
|
|
7.7
|
|
|
(9.3
|
)
|
|
233.2
|
|
|
247.5
|
|
|
12.8
|
|
|
(4.4
|
)
|
|
255.9
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||
Less than 12 months
|
93.0
|
|
|
(3.0
|
)
|
|
123.9
|
|
|
(3.5
|
)
|
12 months or greater
|
65.5
|
|
|
(6.3
|
)
|
|
3.6
|
|
|
(0.8
|
)
|
Total
|
158.5
|
|
|
(9.3
|
)
|
|
127.5
|
|
|
(4.3
|
)
|
Name of Company
|
Country of Incorporation
|
|
% Voting Interest Owned
|
Huaneng Invesco WLR (Beijing) Investment Fund Management Company Ltd.
|
China
|
|
50.0%
|
Invesco Great Wall Fund Management Company Limited
|
China
|
|
49.0%
|
Religare Invesco Asset Management Company Private Ltd.
|
India
|
|
49.0%
|
Religare Invesco Trustee Company Private Ltd.
|
India
|
|
49.0%
|
Pocztylion - ARKA
|
Poland
|
|
29.3%
|
Name of Company
|
Country of Incorporation
|
|
% Voting Interest Owned
|
VV Immobilien Verwaltungs und Beteiligungs GmbH
|
Germany
|
|
70.0%
|
VV Immobilien Verwaltungs GmbH
|
Germany
|
|
70.0%
|
HVH Immobilien und Beteiligungs GmbH
|
Germany
|
|
70.0%
|
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
||
Technology and Other Equipment
|
244.1
|
|
|
268.9
|
|
Software
|
443.0
|
|
|
368.3
|
|
Land and Buildings
|
58.9
|
|
|
62.3
|
|
Leasehold Improvements
|
198.2
|
|
|
196.1
|
|
Work in Process
|
85.8
|
|
|
84.0
|
|
Property, Equipment and Software, Gross
|
1,030.0
|
|
|
979.6
|
|
Less: Accumulated Depreciation
|
(603.1
|
)
|
|
(577.0
|
)
|
Property, Equipment and Software, Net
|
426.9
|
|
|
402.6
|
|
$ in millions
|
Gross Book Value
|
|
Accumulated Amortization
|
|
Net Book Value
|
|
Weighted Average Amortization Period (years)
|
|||
December 31, 2015
|
|
|
|
|
|
|
|
|||
Management contracts - indefinite-lived
|
1,313.9
|
|
|
N/A
|
|
|
1,313.9
|
|
|
N/A
|
Management contracts - finite-lived
|
68.7
|
|
|
(50.1
|
)
|
|
18.6
|
|
|
3.5
|
Customer relationships
|
40.0
|
|
|
(18.6
|
)
|
|
21.4
|
|
|
8.4
|
Other
|
0.8
|
|
|
(0.7
|
)
|
|
0.1
|
|
|
2.8
|
Total
|
1,423.4
|
|
|
(69.4
|
)
|
|
1,354.0
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|||
Management contracts - indefinite-lived
|
1,195.9
|
|
|
N/A
|
|
|
1,195.9
|
|
|
N/A
|
Management contracts - finite-lived
|
88.8
|
|
|
(62.9
|
)
|
|
25.9
|
|
|
3.5
|
Customer relationships
|
40.0
|
|
|
(15.2
|
)
|
|
24.8
|
|
|
8.4
|
Other
|
0.8
|
|
|
(0.7
|
)
|
|
0.1
|
|
|
2.8
|
Total
|
1,325.5
|
|
|
(78.8
|
)
|
|
1,246.7
|
|
|
|
$ in millions
Years Ended December 31,
|
Estimated Amortization Expense
|
|
2016
|
10.8
|
|
2017
|
10.7
|
|
2018
|
5.9
|
|
2019
|
3.3
|
|
2020
|
3.3
|
|
$ in millions
|
Net Book Value
|
|
January 1, 2015
|
6,579.4
|
|
Foreign exchange
|
(403.7
|
)
|
December 31, 2015
|
6,175.7
|
|
|
|
|
January 1, 2014
|
6,867.3
|
|
Foreign exchange
|
(287.9
|
)
|
December 31, 2014
|
6,579.4
|
|
|
As of
|
||||
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
||
Compensation and benefits
|
93.2
|
|
|
94.4
|
|
Accrued bonus and deferred compensation
|
568.1
|
|
|
572.9
|
|
Accrued compensation and benefits
|
661.3
|
|
|
667.3
|
|
|
|
|
|
||
Accruals and other liabilities
|
328.6
|
|
|
263.8
|
|
Deferred carried interest
|
69.2
|
|
|
54.8
|
|
Contingent consideration liability
|
83.9
|
|
|
—
|
|
Accounts payable
|
302.6
|
|
|
343.5
|
|
Income taxes payable
|
78.8
|
|
|
95.2
|
|
Accounts payable and accrued expenses
|
863.1
|
|
|
757.3
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
Carrying Value**
|
|
Fair Value
|
|
Carrying Value**
|
|
Fair Value
|
||||
Floating rate credit facility expiring August 7, 2020
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
596.1
|
|
|
601.4
|
|
|
595.4
|
|
|
596.8
|
|
$600 million 4.000% - due January 30, 2024
|
592.7
|
|
|
628.3
|
|
|
591.9
|
|
|
625.9
|
|
$500 million 3.750% - due January 15, 2026
|
494.2
|
|
|
503.0
|
|
|
—
|
|
|
—
|
|
$400 million 5.375% - due November 30, 2043
|
389.8
|
|
|
428.6
|
|
|
389.5
|
|
|
473.1
|
|
Long-term debt
|
2,072.8
|
|
|
2,161.3
|
|
|
1,576.8
|
|
|
1,695.8
|
|
*
|
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
|
December 31, 2015
|
|
2022
|
596.1
|
|
2024
|
592.7
|
|
2026
|
494.2
|
|
2043
|
389.8
|
|
Long-term debt
|
2,072.8
|
|
In millions
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
|||
Common shares issued
|
490.4
|
|
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(72.9
|
)
|
|
(60.5
|
)
|
|
(57.3
|
)
|
Common shares outstanding
|
417.5
|
|
|
429.9
|
|
|
433.1
|
|
|
Year ended
|
|||||||
In millions
|
December 31, 2015
|
|
December 31, 2014
|
|
December 31, 2013
|
|||
Beginning balance
|
69.4
|
|
|
66.8
|
|
|
59.2
|
|
Acquisition of common shares
|
17.4
|
|
|
9.5
|
|
|
16.3
|
|
Distribution of common shares
|
(5.2
|
)
|
|
(5.8
|
)
|
|
(7.2
|
)
|
Common shares distributed to meet ESPP obligation
|
(0.1
|
)
|
|
(0.2
|
)
|
|
—
|
|
Common shares distributed to meet option exercises
|
(0.2
|
)
|
|
(0.9
|
)
|
|
(1.5
|
)
|
Ending balance
|
81.3
|
|
|
69.4
|
|
|
66.8
|
|
|
2015
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(493.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(493.9
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
11.1
|
|
|
—
|
|
|
—
|
|
|
11.1
|
|
Reclassification of amortization of prior service costs (gains)/losses into employee compensation expenses, net of tax
|
—
|
|
|
(7.2
|
)
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
Reclassification of amortization of actuarial (gains)/losses into employee compensation expenses, net of tax
|
—
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
Unrealized(losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|
(6.0
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
Other comprehensive income/(loss), net of tax
|
(493.9
|
)
|
|
6.1
|
|
|
(0.6
|
)
|
|
(6.4
|
)
|
|
(494.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
Other comprehensive income/(loss), net of tax
|
(493.9
|
)
|
|
6.1
|
|
|
(0.6
|
)
|
|
(6.4
|
)
|
|
(494.8
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending balance
|
(365.8
|
)
|
|
(85.6
|
)
|
|
5.9
|
|
|
(0.5
|
)
|
|
(446.0
|
)
|
|
2014
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(364.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(364.4
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
(26.0
|
)
|
|
—
|
|
|
—
|
|
|
(26.0
|
)
|
Prior service credit related to employee benefit plans
|
—
|
|
|
14.9
|
|
|
—
|
|
|
—
|
|
|
14.9
|
|
Reclassification of amortization of prior service costs (gains)/losses into employee compensation expenses, net of tax
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
Reclassification of amortization of actuarial (gains)/losses into employee compensation expenses, net of tax
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
8.3
|
|
Unrealized(losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|
7.7
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.9
|
)
|
|
(16.9
|
)
|
Other comprehensive income/(loss) net of tax
|
(364.4
|
)
|
|
(13.8
|
)
|
|
8.3
|
|
|
(9.2
|
)
|
|
(379.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
492.5
|
|
|
(77.9
|
)
|
|
(1.8
|
)
|
|
15.1
|
|
|
427.9
|
|
Other comprehensive income/(loss), net of tax
|
(364.4
|
)
|
|
(13.8
|
)
|
|
8.3
|
|
|
(9.2
|
)
|
|
(379.1
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
|
2013
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax*
|
(122.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122.3
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
Reclassification of amortization of prior service costs (gains)/losses into employee compensation expenses, net of tax
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
Reclassification of amortization of actuarial (gains)/losses into employee compensation expenses, net of tax
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
|
(3.9
|
)
|
Unrealized(losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
13.1
|
|
|
13.1
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
(4.1
|
)
|
Other comprehensive income/(loss) net of tax
|
(122.3
|
)
|
|
1.5
|
|
|
(3.9
|
)
|
|
9.0
|
|
|
(115.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
601.7
|
|
|
(79.4
|
)
|
|
2.1
|
|
|
6.1
|
|
|
530.5
|
|
Other comprehensive income/(loss), net of tax
|
(122.3
|
)
|
|
1.5
|
|
|
(3.9
|
)
|
|
9.0
|
|
|
(115.7
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interest
|
13.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.1
|
|
Ending balance
|
492.5
|
|
|
(77.9
|
)
|
|
(1.8
|
)
|
|
15.1
|
|
|
427.9
|
|
*
|
Included in this amount are net
losses
of
$13.1 million
for the year ended
December 31, 2013
related to foreign currency translation adjustments attributable to CIP.
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
Millions of shares, except fair values
|
Time-Vested
|
|
Performance-Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
|
Time-Vested
|
|
Performance-Vested
|
|
Time-
Vested
|
|
Performance-Vested
|
|||||||
Unvested at the beginning of year
|
11.5
|
|
|
0.5
|
|
|
29.00
|
|
|
13.9
|
|
|
0.4
|
|
|
16.5
|
|
|
0.3
|
|
Granted during the year
|
4.1
|
|
|
0.3
|
|
|
39.99
|
|
|
4.4
|
|
|
0.2
|
|
|
5.2
|
|
|
0.2
|
|
Forfeited during the year
|
(0.2
|
)
|
|
—
|
|
|
33.26
|
|
|
(1.2
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
Vested and distributed during the year
|
(5.0
|
)
|
|
(0.2
|
)
|
|
28.29
|
|
|
(5.6
|
)
|
|
(0.1
|
)
|
|
(6.9
|
)
|
|
(0.1
|
)
|
Unvested at the end of the year
|
10.4
|
|
|
0.6
|
|
|
33.62
|
|
|
11.5
|
|
|
0.5
|
|
|
13.9
|
|
|
0.4
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Benefit obligation
|
(490.7
|
)
|
|
(520.2
|
)
|
|
(8.7
|
)
|
|
(10.2
|
)
|
Fair value of plan assets
|
422.7
|
|
|
420.6
|
|
|
5.7
|
|
|
7.2
|
|
Funded status
|
(68.0
|
)
|
|
(99.6
|
)
|
|
(3.0
|
)
|
|
(3.0
|
)
|
Amounts recognized in the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
||||
Other assets
|
4.9
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
Accrued compensation and benefits
|
(72.9
|
)
|
|
(102.7
|
)
|
|
(3.0
|
)
|
|
(3.0
|
)
|
Funded status
|
(68.0
|
)
|
|
(99.6
|
)
|
|
(3.0
|
)
|
|
(3.0
|
)
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
January 1
|
520.2
|
|
|
486.2
|
|
|
10.2
|
|
|
43.6
|
|
Service cost
|
5.4
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
Interest cost
|
17.7
|
|
|
21.0
|
|
|
—
|
|
|
1.8
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.4
|
|
Actuarial (gains)/losses
|
(15.0
|
)
|
|
51.1
|
|
|
0.2
|
|
|
(9.2
|
)
|
Exchange difference
|
(26.1
|
)
|
|
(35.0
|
)
|
|
—
|
|
|
—
|
|
Benefits paid
|
(11.5
|
)
|
|
(8.0
|
)
|
|
(1.9
|
)
|
|
(2.9
|
)
|
Plan amendments*
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.5
|
)
|
December 31
|
490.7
|
|
|
520.2
|
|
|
8.7
|
|
|
10.2
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Discount rate
|
3.69
|
%
|
|
3.52
|
%
|
|
—
|
%
|
|
—
|
%
|
Expected rate of salary increases
|
3.16
|
%
|
|
3.06
|
%
|
|
—
|
%
|
|
—
|
%
|
Future pension/medical cost trend rate increases
|
2.98
|
%
|
|
2.88
|
%
|
|
5.00%-6.40%
|
|
|
5.00%-6.80%
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
January 1
|
420.6
|
|
|
407.1
|
|
|
7.2
|
|
|
10.0
|
|
Actual return on plan assets
|
23.1
|
|
|
32.2
|
|
|
(0.1
|
)
|
|
—
|
|
Exchange difference
|
(25.4
|
)
|
|
(26.6
|
)
|
|
—
|
|
|
0.1
|
|
Contributions from the company
|
15.5
|
|
|
15.9
|
|
|
—
|
|
|
—
|
|
Contributions from plan participants
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.1
|
|
Benefits paid
|
(11.1
|
)
|
|
(8.0
|
)
|
|
(1.9
|
)
|
|
(3.0
|
)
|
December 31
|
422.7
|
|
|
420.6
|
|
|
5.7
|
|
|
7.2
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Prior service cost/(credit)
|
—
|
|
|
—
|
|
|
(11.3
|
)
|
|
(21.6
|
)
|
Net actuarial loss/(gain)
|
118.2
|
|
|
136.5
|
|
|
(8.4
|
)
|
|
(8.7
|
)
|
Total
|
118.2
|
|
|
136.5
|
|
|
(19.7
|
)
|
|
(30.3
|
)
|
$ in millions
|
Retirement Plans
|
|
Medical Plan
|
||
Prior service cost/(credit)
|
—
|
|
|
(11.3
|
)
|
Net actuarial loss/(gain)
|
2.2
|
|
|
(0.3
|
)
|
Total
|
2.2
|
|
|
(11.6
|
)
|
|
Retirement Plans
|
||||
$ in millions
|
2015
|
|
2014
|
||
Plans with accumulated benefit obligation in excess of plan assets:
|
|
|
|
||
Accumulated benefit obligation
|
480.9
|
|
|
509.9
|
|
Fair value of plan assets
|
407.9
|
|
|
406.1
|
|
Plans with projected benefit obligation in excess of plan assets:
|
|
|
|
|
|
Projected benefit obligation
|
480.9
|
|
|
509.9
|
|
Fair value of plan assets
|
407.9
|
|
|
406.1
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||
Service cost
|
5.4
|
|
|
4.9
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Interest cost
|
17.7
|
|
|
21.0
|
|
|
19.0
|
|
|
—
|
|
|
1.8
|
|
|
1.9
|
|
Expected return on plan assets
|
(22.9
|
)
|
|
(24.6
|
)
|
|
(18.5
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
(0.6
|
)
|
Amortization of prior service cost/(credit)
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
(11.3
|
)
|
|
(2.3
|
)
|
|
(2.0
|
)
|
Amortization of net actuarial (gain)/loss
|
3.0
|
|
|
1.8
|
|
|
2.0
|
|
|
(0.3
|
)
|
|
—
|
|
|
0.3
|
|
Curtailment (gain)/loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
|
—
|
|
Net periodic benefit cost/(credit)
|
3.3
|
|
|
3.2
|
|
|
7.0
|
|
|
(11.6
|
)
|
|
(5.1
|
)
|
|
(0.2
|
)
|
|
Retirement Plans
|
|||||||
|
2015
|
|
2014
|
|
2013
|
|||
Discount rate
|
3.52
|
%
|
|
4.39
|
%
|
|
4.67
|
%
|
Expected return on plan assets
|
5.90
|
%
|
|
6.01
|
%
|
|
5.60
|
%
|
Expected rate of salary increases
|
3.06
|
%
|
|
3.37
|
%
|
|
3.09
|
%
|
Future pension rate increases
|
2.88
|
%
|
|
2.85
|
%
|
|
2.79
|
%
|
|
Medical Plan
|
|||||||
|
2015
|
|
2014
|
|
2013
|
|||
Discount rate
|
—
|
%
|
|
4.70
|
%
|
|
3.79
|
%
|
Expected return on plan assets
|
—
|
%
|
|
6.25
|
%
|
|
6.50
|
%
|
Expected rate of salary increases
|
—
|
%
|
|
2.50
|
%
|
|
2.50
|
%
|
Future medical cost trend rate increases
|
5.00%-6.80%
|
|
|
5.00%-7.20%
|
|
|
5.00%-7.60%
|
|
$ in millions
|
Retirement Plans
|
|
% of Plan Assets
|
|
Medical Plan
|
|
% of Plan Assets
|
||||
Cash and cash equivalents
|
5.2
|
|
|
1.2
|
%
|
|
5.7
|
|
|
100.0
|
%
|
Fund investments
|
200.6
|
|
|
47.4
|
%
|
|
—
|
|
|
—
|
%
|
Equity securities
|
129.1
|
|
|
30.5
|
%
|
|
—
|
|
|
—
|
%
|
Government debt securities
|
70.6
|
|
|
16.7
|
%
|
|
—
|
|
|
—
|
%
|
Other assets
|
5.5
|
|
|
1.3
|
%
|
|
—
|
|
|
—
|
%
|
Guaranteed investments contracts
|
11.7
|
|
|
2.8
|
%
|
|
—
|
|
|
—
|
%
|
Total
|
422.7
|
|
|
100.0
|
%
|
|
5.7
|
|
|
100.0
|
%
|
$ in millions
|
Retirement Plans
|
|
% of Plan Assets
|
|
Medical Plan
|
|
% of Plan Assets
|
||||
Cash and cash equivalents
|
3.8
|
|
|
0.9
|
%
|
|
7.2
|
|
|
100.0
|
%
|
Fund investments
|
197.5
|
|
|
46.9
|
%
|
|
—
|
|
|
—
|
%
|
Equity securities
|
124.8
|
|
|
29.7
|
%
|
|
—
|
|
|
—
|
%
|
Government debt securities
|
76.5
|
|
|
18.2
|
%
|
|
—
|
|
|
—
|
%
|
Other assets
|
4.9
|
|
|
1.2
|
%
|
|
—
|
|
|
—
|
%
|
Guaranteed investments contracts
|
13.1
|
|
|
3.1
|
%
|
|
—
|
|
|
—
|
%
|
Total
|
420.6
|
|
|
100.0
|
%
|
|
7.2
|
|
|
100.0
|
%
|
•
|
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, 2015
|
||||||||||
$ 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
|
5.7
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
Fund investments
|
200.6
|
|
|
200.6
|
|
|
—
|
|
|
—
|
|
Equity securities
|
129.1
|
|
|
129.1
|
|
|
—
|
|
|
—
|
|
Government debt securities
|
70.6
|
|
|
13.5
|
|
|
57.1
|
|
|
—
|
|
Other assets
|
5.5
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
Guaranteed investments contracts
|
11.7
|
|
|
—
|
|
|
—
|
|
|
11.7
|
|
Total
|
423.2
|
|
|
354.4
|
|
|
57.1
|
|
|
11.7
|
|
|
As of December 31, 2014
|
||||||||||
$ 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
|
7.2
|
|
|
7.2
|
|
|
—
|
|
|
—
|
|
Fund investments
|
197.5
|
|
|
197.5
|
|
|
—
|
|
|
—
|
|
Equity securities
|
124.8
|
|
|
124.8
|
|
|
—
|
|
|
—
|
|
Government debt securities
|
76.5
|
|
|
15.2
|
|
|
61.3
|
|
|
—
|
|
Other assets
|
4.9
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
Guaranteed investment contracts
|
13.1
|
|
|
—
|
|
|
—
|
|
|
13.1
|
|
Total
|
424.0
|
|
|
349.6
|
|
|
61.3
|
|
|
13.1
|
|
$ in millions
|
Year ended December 31, 2015
|
|
Year ended December 31, 2014
|
||
Balance, beginning of year
|
13.1
|
|
|
15.2
|
|
Unrealized gains/(losses) relating to the instrument still held at the reporting date
|
0.1
|
|
|
1.0
|
|
Purchases, sales, issuances and settlements (net)
|
(1.5
|
)
|
|
(3.1
|
)
|
Balance, end of year
|
11.7
|
|
|
13.1
|
|
Assets
|
|
Fair Value at December 31, 2015 ($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Guaranteed investment contracts
|
|
11.7
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.8%
|
|
|
|
|
|
|
Mortality assumption
|
|
Standard U.K. mortality tables with a long-term rate of improvement of 1.25%
|
$ in millions
|
Retirement Plans
|
|
Medical Plan
|
||
Expected benefit payments:
|
|
|
|
||
2016
|
11.1
|
|
|
6.9
|
|
2017
|
11.5
|
|
|
0.3
|
|
2018
|
11.9
|
|
|
0.2
|
|
2019
|
12.2
|
|
|
0.2
|
|
2020
|
12.6
|
|
|
—
|
|
Thereafter in the succeeding five years
|
70.1
|
|
|
—
|
|
$ in millions
|
Total
|
|
Buildings
|
|
Other
|
|||
2016
|
70.5
|
|
|
67.2
|
|
|
3.3
|
|
2017
|
60.5
|
|
|
57.4
|
|
|
3.1
|
|
2018
|
61.4
|
|
|
58.7
|
|
|
2.7
|
|
2019
|
60.2
|
|
|
57.8
|
|
|
2.4
|
|
2020
|
52.4
|
|
|
50.7
|
|
|
1.7
|
|
Thereafter
|
154.0
|
|
|
153.2
|
|
|
0.8
|
|
Gross lease commitments
|
459.0
|
|
|
445.0
|
|
|
14.0
|
|
Less: future minimum payments expected to be received under non-cancelable subleases
|
67.0
|
|
|
67.0
|
|
|
—
|
|
Net lease commitments
|
392.0
|
|
|
378.0
|
|
|
14.0
|
|
$ in millions
|
2015
|
|
2014
|
|
2013
|
|||
Other gains:
|
|
|
|
|
|
|||
Gain on sale of investments
|
3.8
|
|
|
13.0
|
|
|
3.6
|
|
Gain on trading investments, net
|
—
|
|
|
15.4
|
|
|
38.5
|
|
Gain on contingent consideration liability
|
27.1
|
|
|
—
|
|
|
—
|
|
Other realized gains
|
0.9
|
|
|
0.2
|
|
|
3.2
|
|
Total other gains
|
31.8
|
|
|
28.6
|
|
|
45.3
|
|
Other losses:
|
|
|
|
|
|
|||
Other-than-temporary impairment of available-for-sale investments
|
(2.0
|
)
|
|
—
|
|
|
—
|
|
Loss on trading investments, net
|
(13.5
|
)
|
|
—
|
|
|
—
|
|
Net foreign exchange losses
|
(2.4
|
)
|
|
(0.2
|
)
|
|
(0.6
|
)
|
Payment to investment trust
|
—
|
|
|
—
|
|
|
(31.9
|
)
|
Liquidation of co-investment
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
Foreign exchange hedge loss
|
(7.7
|
)
|
|
—
|
|
|
(1.8
|
)
|
Realized loss on sale of partnerships
|
(7.3
|
)
|
|
—
|
|
|
—
|
|
Other realized losses
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(4.3
|
)
|
Total other losses
|
(33.3
|
)
|
|
(0.5
|
)
|
|
(42.7
|
)
|
Other gains and losses, net
|
(1.5
|
)
|
|
28.1
|
|
|
2.6
|
|
$ in millions
|
2015
|
|
2014
|
|
2013
|
|||
Current:
|
|
|
|
|
|
|||
Federal
|
(221.0
|
)
|
|
(227.5
|
)
|
|
(149.3
|
)
|
State
|
(23.4
|
)
|
|
(31.3
|
)
|
|
(22.0
|
)
|
Foreign
|
(161.4
|
)
|
|
(161.2
|
)
|
|
(129.9
|
)
|
|
(405.8
|
)
|
|
(420.0
|
)
|
|
(301.2
|
)
|
Deferred:
|
|
|
|
|
|
|
|
|
Federal
|
11.9
|
|
|
26.8
|
|
|
(24.1
|
)
|
State
|
(5.2
|
)
|
|
1.0
|
|
|
(7.4
|
)
|
Foreign
|
1.1
|
|
|
1.6
|
|
|
(4.2
|
)
|
|
7.8
|
|
|
29.4
|
|
|
(35.7
|
)
|
Total income tax (provision)
|
(398.0
|
)
|
|
(390.6
|
)
|
|
(336.9
|
)
|
$ in millions
|
2015
|
|
2014
|
||
Deferred tax assets:
|
|
|
|
||
Deferred compensation arrangements
|
70.0
|
|
|
56.2
|
|
Accrued rent expenses
|
16.4
|
|
|
18.3
|
|
Tax loss carryforwards
|
61.7
|
|
|
75.0
|
|
Postretirement medical, pension and other benefits
|
21.7
|
|
|
25.5
|
|
Investment basis differences
|
67.0
|
|
|
47.8
|
|
Accrued bonus
|
64.1
|
|
|
46.3
|
|
Other
|
7.3
|
|
|
20.3
|
|
Total deferred tax assets
|
308.2
|
|
|
289.4
|
|
Valuation allowance
|
(61.7
|
)
|
|
(72.7
|
)
|
Deferred tax assets, net of valuation allowance
|
246.5
|
|
|
216.7
|
|
Deferred tax liabilities:
|
|
|
|
|
|
Deferred sales commissions
|
(16.5
|
)
|
|
(21.0
|
)
|
Goodwill and intangibles
|
(472.0
|
)
|
|
(447.4
|
)
|
Undistributed earnings of subsidiaries
|
(1.5
|
)
|
|
(1.6
|
)
|
Fixed assets
|
(26.4
|
)
|
|
(26.4
|
)
|
Other
|
(3.9
|
)
|
|
(6.8
|
)
|
Total deferred tax liabilities
|
(520.3
|
)
|
|
(503.2
|
)
|
Net deferred tax assets/(liabilities)
|
(273.8
|
)
|
|
(286.5
|
)
|
|
2015
|
|
2014
|
|
2013
|
|||
Statutory Rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Foreign jurisdiction statutory income tax rates
|
(9.2
|
)%
|
|
(8.5
|
)%
|
|
(9.4
|
)%
|
State taxes, net of federal tax effect
|
1.6
|
%
|
|
1.4
|
%
|
|
1.5
|
%
|
Change in valuation allowance for unrecognized tax losses
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
Other
|
1.8
|
%
|
|
0.5
|
%
|
|
0.7
|
%
|
(Gains)/losses attributable to noncontrolling interests
|
0.1
|
%
|
|
(0.3
|
)%
|
|
(0.9
|
)%
|
Effective tax rate per Consolidated Statements of Income
|
29.2
|
%
|
|
28.0
|
%
|
|
26.8
|
%
|
$ in millions
|
Gross Unrecognized Income Tax Benefits
|
|
Balance at January 1, 2013
|
22.6
|
|
Additions for tax positions related to the current year
|
1.0
|
|
Additions for tax positions related to prior years
|
0.7
|
|
Other reductions for tax positions related to prior years
|
(7.5
|
)
|
Reductions for statute closings
|
—
|
|
Balance at December 31, 2013
|
16.8
|
|
Additions for tax positions related to the current year
|
—
|
|
Additions for tax positions related to prior years
|
1.2
|
|
Other reductions for tax positions related to prior years
|
(10.8
|
)
|
Reductions for statute closings
|
(1.2
|
)
|
Balance at December 31, 2014
|
6.0
|
|
Additions for tax positions related to the current year
|
2.5
|
|
Additions for tax positions related to prior years
|
2.2
|
|
Other reductions for tax positions related to prior years
|
(1.1
|
)
|
Reductions for statute closings
|
—
|
|
Balance at December 31, 2015
|
9.6
|
|
|
Years ended December 31,
|
||||||||||
In millions, except per share data
|
2015
|
|
2014
|
|
2013
|
||||||
Income from continuing operations, net of taxes
|
|
$964.1
|
|
|
|
$1,004.5
|
|
|
|
$918.3
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
4.0
|
|
|
(13.0
|
)
|
|
(42.5
|
)
|
|||
Income from continuing operations attributable to Invesco Ltd. for basic and diluted EPS calculations
|
968.1
|
|
|
991.5
|
|
|
875.8
|
|
|||
Income from discontinued operations, net of taxes
|
—
|
|
|
(3.4
|
)
|
|
64.5
|
|
|||
Net income attributable to Invesco Ltd.
|
968.1
|
|
|
988.1
|
|
|
940.3
|
|
|||
Less: Allocation of earnings to restricted shares
|
(24.6
|
)
|
|
(28.2
|
)
|
|
(32.1
|
)
|
|||
Net income attributable to common shareholders
|
|
$943.5
|
|
|
|
$959.9
|
|
|
|
$908.2
|
|
|
|
|
|
|
|
||||||
Invesco Ltd:
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic
|
428.9
|
|
|
435.0
|
|
|
447.5
|
|
|||
Dilutive effect of non-participating share-based awards
|
0.4
|
|
|
0.6
|
|
|
1.0
|
|
|||
Weighted average shares outstanding - diluted
|
429.3
|
|
|
435.6
|
|
|
448.5
|
|
|||
|
|
|
|
|
|
||||||
Common shareholders:
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic
|
428.9
|
|
|
435.0
|
|
|
447.5
|
|
|||
Less: Weighted average restricted shares
|
(10.9
|
)
|
|
(12.4
|
)
|
|
(15.3
|
)
|
|||
Weighted average common shares outstanding- basic
|
418.0
|
|
|
422.6
|
|
|
432.2
|
|
|||
Dilutive effect of non-participating share-based awards
|
0.4
|
|
|
0.6
|
|
|
1.0
|
|
|||
Weighted average common shares outstanding - diluted
|
418.4
|
|
|
423.2
|
|
|
433.2
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings per share:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
$2.26
|
|
$2.28
|
|
$1.96
|
||||||
Earnings per share from discontinued operations
|
|
$—
|
|
|
($0.01)
|
|
$0.14
|
||||
Basic earnings per share
|
$2.26
|
|
$2.27
|
|
$2.10
|
||||||
|
|
|
|
|
|
||||||
Diluted earnings per share:
|
|
|
|
|
|
||||||
Earnings per share from continuing operations
|
$2.26
|
|
$2.28
|
|
$1.95
|
||||||
Earnings per share from discontinued operations
|
|
$—
|
|
|
($0.01)
|
|
$0.14
|
||||
Diluted earnings per share
|
$2.26
|
|
$2.27
|
|
$2.10
|
$ in millions
|
U.S.
|
|
U.K.
|
|
Continental Europe/Ireland
|
|
Canada
|
|
Asia
|
|
Total
|
||||||
For the year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,622.1
|
|
|
1,153.0
|
|
|
891.9
|
|
|
353.9
|
|
|
102.0
|
|
|
5,122.9
|
|
Inter-company revenue
|
(8.6
|
)
|
|
114.4
|
|
|
(216.7
|
)
|
|
(7.0
|
)
|
|
117.9
|
|
|
—
|
|
Total operating revenues
|
2,613.5
|
|
|
1,267.4
|
|
|
675.2
|
|
|
346.9
|
|
|
219.9
|
|
|
5,122.9
|
|
Long-lived assets
|
306.7
|
|
|
88.3
|
|
|
6.8
|
|
|
10.0
|
|
|
15.1
|
|
|
426.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
For the year ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,534.9
|
|
|
1,286.7
|
|
|
810.2
|
|
|
396.6
|
|
|
118.7
|
|
|
5,147.1
|
|
Inter-company revenue
|
11.5
|
|
|
87.8
|
|
|
(205.5
|
)
|
|
(8.9
|
)
|
|
115.1
|
|
|
—
|
|
Total operating revenues
|
2,546.4
|
|
|
1,374.5
|
|
|
604.7
|
|
|
387.7
|
|
|
233.8
|
|
|
5,147.1
|
|
Long-lived assets
|
279.2
|
|
|
91.6
|
|
|
6.6
|
|
|
9.9
|
|
|
15.3
|
|
|
402.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
For the year ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers
|
2,332.2
|
|
|
1,294.0
|
|
|
541.9
|
|
|
374.8
|
|
|
101.7
|
|
|
4,644.6
|
|
Inter-company revenue
|
(3.6
|
)
|
|
48.1
|
|
|
(130.9
|
)
|
|
(9.8
|
)
|
|
96.2
|
|
|
—
|
|
Total operating revenues
|
2,328.6
|
|
|
1,342.1
|
|
|
411.0
|
|
|
365.0
|
|
|
197.9
|
|
|
4,644.6
|
|
Long-lived assets
|
225.8
|
|
|
91.9
|
|
|
8.1
|
|
|
9.5
|
|
|
15.5
|
|
|
350.8
|
|
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
||
Investments of CSIP
|
290.3
|
|
|
288.5
|
|
Cash and cash equivalents of CSIP
|
21.9
|
|
|
11.4
|
|
Accounts receivable and other assets of CSIP
|
6.9
|
|
|
5.9
|
|
Assets of CSIP
|
319.1
|
|
|
305.8
|
|
Other liabilities of CSIP
|
(4.4
|
)
|
|
(7.9
|
)
|
Equity attributable to redeemable noncontrolling interests
|
(167.3
|
)
|
|
(165.5
|
)
|
Equity attributable to nonredeemable noncontrolling interests
|
(40.8
|
)
|
|
(10.6
|
)
|
Invesco's net interests in CSIP
|
106.6
|
|
|
121.8
|
|
Invesco's net interests as a percentage of investments of CSIP
|
36.7
|
%
|
|
42.2
|
%
|
|
As of December 31, 2015
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
||||
Investments:
|
|
|
|
|
|
|
|
||||
Fixed income securities
|
204.2
|
|
|
—
|
|
|
204.2
|
|
|
—
|
|
Equity securities
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
Investments in fixed income funds*
|
35.0
|
|
|
35.0
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds*
|
50.4
|
|
|
—
|
|
|
—
|
|
|
50.4
|
|
Total investments at fair value
|
290.3
|
|
|
35.7
|
|
|
204.2
|
|
|
50.4
|
|
|
As of December 31, 2014
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Other Unobservable Inputs (Level 3) |
||||
Investments:
|
|
|
|
|
|
|
|
||||
Fixed income securities
|
200.3
|
|
|
—
|
|
|
200.3
|
|
|
—
|
|
Investments in fixed income funds*
|
58.0
|
|
|
58.0
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds*
|
30.2
|
|
|
—
|
|
|
—
|
|
|
30.2
|
|
Total investments at fair value
|
288.5
|
|
|
58.0
|
|
|
200.3
|
|
|
30.2
|
|
*
|
Investments in fixed income funds and other private equity funds are valued using the net asset value (NAV) as a practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date. Refer to Note
20
, "Consolidated Investment Products," for additional discussion regarding the fair value of private equity funds.
|
|
|
As of December 31, 2015
|
|||||||||
|
|
Fair Value
($ in millions)
|
|
Total Unfunded Commitments ($ in millions)
|
|
Weighted Average Remaining Term
(1)
|
|
Redemption Frequency
|
|
Redemption Notice Period
|
|
Fixed income funds
|
|
35.0
|
|
—
|
|
|
n/a
|
|
Monthly
|
|
10 days
|
Private equity fund of funds
|
|
50.4
|
|
33.2
|
|
7.9 years
|
|
n/a
(2)
|
|
n/a
(2)
|
|
|
As of December 31, 2014
|
|||||||||
|
|
Fair Value
($ in millions)
|
|
Total Unfunded Commitments ($ in millions)
|
|
Weighted Average Remaining Term
(1)
|
|
Redemption Frequency
|
|
Redemption Notice Period
|
|
Fixed income funds
|
|
58.0
|
|
—
|
|
|
n/a
|
|
Monthly
|
|
10 days
|
Private equity fund of funds
|
|
30.2
|
|
35.0
|
|
7.6 years
|
|
n/a
(2)
|
|
n/a
(2)
|
|
Year ended December 31,
|
||||
$ in millions
|
2015
|
|
2014
|
||
Beginning balance
|
30.2
|
|
|
16.2
|
|
Purchases
|
10.8
|
|
|
9.0
|
|
Sales
|
(2.8
|
)
|
|
(1.0
|
)
|
Gains and losses included in the Consolidated Statements of Income*
|
12.2
|
|
|
6.0
|
|
Ending balance
|
50.4
|
|
|
30.2
|
|
*
|
Included in other income/(expense) of CSIP, net, in the Consolidated Statement of Income for the year ended
December 31, 2015
are $
12.2 million
in net unrealized gains attributable to investments still held at
December 31, 2015
(year ended
December 31, 2014
:
$6.0 million
in net unrealized gains attributable to investments still held at
December 31, 2014
).
|
|
As of
|
||||
$ in millions
|
December 31, 2015
|
|
December 31, 2014
|
||
Cash and cash equivalents of CIP
|
363.3
|
|
|
404.0
|
|
Accounts receivable and other assets of CIP
|
173.5
|
|
|
161.3
|
|
Investments of CIP
|
6,016.1
|
|
|
5,762.8
|
|
Less: Debt of CIP
|
(5,437.0
|
)
|
|
(5,149.6
|
)
|
Less: Other liabilities of CIP
|
(273.7
|
)
|
|
(280.9
|
)
|
Less: Retained earnings
|
20.1
|
|
|
(20.3
|
)
|
Less: Retained earnings appropriated for investors in CIP
|
—
|
|
|
(17.6
|
)
|
Less: Accumulated other comprehensive income, net of tax
|
(20.1
|
)
|
|
20.2
|
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(768.8
|
)
|
|
(781.2
|
)
|
Invesco's net interests in CIP
|
73.4
|
|
|
98.7
|
|
Invesco's net interests as a percentage of investments of CIP
|
1.2
|
%
|
|
1.7
|
%
|
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Company's Maximum Risk of Loss
|
|||
CLO investments
|
3
|
|
|
1.4
|
|
|
1.4
|
|
Partnership and trust investments
|
—
|
|
|
24.0
|
|
|
24.0
|
|
Investments in Invesco Mortgage Capital Inc.
|
—
|
|
|
27.0
|
|
|
27.0
|
|
Total
|
|
52.4
|
|
|
|
For the year ended December 31, 2015
|
|
For the year ended December 31, 2014
|
||||||||
$ in millions
|
|
VIEs
|
|
VOEs
|
|
VIEs
|
|
VOEs
|
||||
Cash and cash equivalents of CIP
|
|
449.8
|
|
|
10.0
|
|
|
816.5
|
|
|
—
|
|
Accounts receivable and other assets of CIP
|
|
5.6
|
|
|
—
|
|
|
11.3
|
|
|
9.0
|
|
Investments of CIP
|
|
1,009.5
|
|
|
49.9
|
|
|
1,751.4
|
|
|
40.1
|
|
Total assets
|
|
1,464.9
|
|
|
59.9
|
|
|
2,579.2
|
|
|
49.1
|
|
|
|
|
|
|
|
|
|
|
||||
Debt of CIP
|
|
1,100.4
|
|
|
—
|
|
|
1,913.7
|
|
|
—
|
|
Other liabilities of CIP
|
|
364.5
|
|
|
—
|
|
|
674.7
|
|
|
11.8
|
|
Total liabilities
|
|
1,464.9
|
|
|
—
|
|
|
2,588.4
|
|
|
11.8
|
|
Total equity
|
|
—
|
|
|
59.9
|
|
|
(9.2
|
)
|
|
37.3
|
|
Total liabilities and equity
|
|
1,464.9
|
|
|
59.9
|
|
|
2,579.2
|
|
|
49.1
|
|
|
For the year ended December 31, 2014
|
|
$ in millions
|
CLOs - VIEs
|
|
Cash and cash equivalents of CIP
|
30.5
|
|
Accounts receivable and other assets of CIP
|
17.6
|
|
Investments of CIP
|
346.5
|
|
Total assets
|
394.6
|
|
|
|
|
Debt of CIP
|
347.9
|
|
Other liabilities of CIP
|
45.7
|
|
Total liabilities
|
393.6
|
|
Total equity
|
1.0
|
|
Total liabilities and equity
|
394.6
|
|
|
|
As of December 31, 2015
|
|||||||||||||
$ in millions
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(1)
|
|
Impact of CIP
|
|||||
Accounts receivable
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|
(4.9
|
)
|
Investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(68.5
|
)
|
|
(68.5
|
)
|
Cash and cash equivalents of CIP
|
|
342.1
|
|
|
1.4
|
|
|
19.4
|
|
|
0.4
|
|
|
363.3
|
|
Accounts receivable of CIP
|
|
161.7
|
|
|
0.1
|
|
|
11.7
|
|
|
—
|
|
|
173.5
|
|
Investments of CIP
|
|
5,289.5
|
|
|
83.7
|
|
|
719.1
|
|
|
(76.2
|
)
|
|
6,016.1
|
|
Total assets
|
|
5,793.3
|
|
|
85.2
|
|
|
750.2
|
|
|
(149.2
|
)
|
|
6,479.5
|
|
Debt of CIP
|
|
5,519.2
|
|
|
—
|
|
|
—
|
|
|
(82.2
|
)
|
|
5,437.0
|
|
Other liabilities of CIP
|
|
274.1
|
|
|
1.2
|
|
|
3.4
|
|
|
(5.0
|
)
|
|
273.7
|
|
Total liabilities
|
|
5,793.3
|
|
|
1.2
|
|
|
3.4
|
|
|
(87.2
|
)
|
|
5,710.7
|
|
Retained earnings
|
|
(20.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.1
|
)
|
Accumulated other comprehensive income, net of tax
|
|
20.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.1
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
|
—
|
|
|
84.0
|
|
|
746.8
|
|
|
(62.0
|
)
|
|
768.8
|
|
Total liabilities and equity
|
|
5,793.3
|
|
|
85.2
|
|
|
750.2
|
|
|
(149.2
|
)
|
|
6,479.5
|
|
|
|
As of December 31, 2014
|
|||||||||||||
$ in millions
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(1)
|
|
Impact of CIP
|
|||||
Accounts receivable
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|
(3.8
|
)
|
Investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94.9
|
)
|
|
(94.9
|
)
|
Cash and cash equivalents of CIP
|
|
378.8
|
|
|
5.0
|
|
|
21.5
|
|
|
(1.3
|
)
|
|
404.0
|
|
Accounts receivable of CIP
|
|
155.7
|
|
|
0.1
|
|
|
5.5
|
|
|
—
|
|
|
161.3
|
|
Investments of CIP
|
|
5,063.5
|
|
|
53.4
|
|
|
730.2
|
|
|
(84.3
|
)
|
|
5,762.8
|
|
Total assets
|
|
5,598.0
|
|
|
58.5
|
|
|
757.2
|
|
|
(184.3
|
)
|
|
6,229.4
|
|
Debt of CIP
|
|
5,302.9
|
|
|
—
|
|
|
—
|
|
|
(153.3
|
)
|
|
5,149.6
|
|
Other liabilities of CIP
|
|
277.4
|
|
|
0.4
|
|
|
6.9
|
|
|
(3.8
|
)
|
|
280.9
|
|
Total liabilities
|
|
5,580.3
|
|
|
0.4
|
|
|
6.9
|
|
|
(157.1
|
)
|
|
5,430.5
|
|
Retained Earnings
|
|
20.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.3
|
|
Retained earnings appropriated for investors in CIP
|
|
17.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.6
|
|
Accumulated other comprehensive income, net of tax
|
|
(20.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.2
|
)
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
|
—
|
|
|
58.1
|
|
|
750.3
|
|
|
(27.2
|
)
|
|
781.2
|
|
Total liabilities and equity
|
|
5,598.0
|
|
|
58.5
|
|
|
757.2
|
|
|
(184.3
|
)
|
|
6,229.4
|
|
(1)
|
Adjustments include the elimination of intercompany transactions between the company and its CIP, 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.
|
|
|
Year ended December 31, 2015
|
|||||||||||||
$ in millions
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.2
|
)
|
|
(39.2
|
)
|
Total operating expenses
|
|
56.7
|
|
|
1.0
|
|
|
5.5
|
|
|
(39.2
|
)
|
|
24.0
|
|
Operating income
|
|
(56.7
|
)
|
|
(1.0
|
)
|
|
(5.5
|
)
|
|
—
|
|
|
(63.2
|
)
|
Equity in earnings of unconsolidated affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|
(1.7
|
)
|
Interest and dividend income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|
(4.4
|
)
|
Other gains and losses, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
(3.9
|
)
|
Interest and dividend income of CIP
|
|
271.1
|
|
|
0.1
|
|
|
1.5
|
|
|
(19.7
|
)
|
|
253.0
|
|
Interest expense of CIP
|
|
(213.0
|
)
|
|
—
|
|
|
—
|
|
|
24.1
|
|
|
(188.9
|
)
|
Other gains/(losses) of CIP, net
|
|
(1.4
|
)
|
|
5.2
|
|
|
(4.7
|
)
|
|
(36.1
|
)
|
|
(37.0
|
)
|
Income from continuing operations before income taxes
|
|
—
|
|
|
4.3
|
|
|
(8.7
|
)
|
|
(41.7
|
)
|
|
(46.1
|
)
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
|
—
|
|
|
4.3
|
|
|
(8.7
|
)
|
|
(41.7
|
)
|
|
(46.1
|
)
|
Income from discontinued operations, net of income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
|
—
|
|
|
4.3
|
|
|
(8.7
|
)
|
|
(41.7
|
)
|
|
(46.1
|
)
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
|
—
|
|
|
(4.3
|
)
|
|
5.8
|
|
|
4.2
|
|
|
5.7
|
|
Net income attributable to Invesco Ltd.
|
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
|
(37.5
|
)
|
|
(40.4
|
)
|
|
|
Year ended December 31, 2014
|
|||||||||||||
$ in millions
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
|
—
|
|
|
0.2
|
|
|
0.4
|
|
|
(35.8
|
)
|
|
(35.2
|
)
|
Total operating expenses
|
|
61.5
|
|
|
1.1
|
|
|
7.8
|
|
|
(35.8
|
)
|
|
34.6
|
|
Operating income
|
|
(61.5
|
)
|
|
(0.9
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
(69.8
|
)
|
Equity in earnings of unconsolidated affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.0
|
)
|
|
(4.0
|
)
|
Interest and dividend income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
(3.3
|
)
|
Other gains and losses, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
(4.8
|
)
|
Interest and dividend income of CIP
|
|
220.4
|
|
|
—
|
|
|
—
|
|
|
(13.9
|
)
|
|
206.5
|
|
Interest expense of CIP
|
|
(151.2
|
)
|
|
—
|
|
|
—
|
|
|
17.3
|
|
|
(133.9
|
)
|
Other gains/ (losses) of CIP, net
|
|
(93.2
|
)
|
|
(1.0
|
)
|
|
102.3
|
|
|
12.3
|
|
|
20.4
|
|
Income from continuing operations before income taxes
|
|
(85.5
|
)
|
|
(1.9
|
)
|
|
94.9
|
|
|
3.6
|
|
|
11.1
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
|
(85.5
|
)
|
|
(1.9
|
)
|
|
94.9
|
|
|
3.6
|
|
|
11.1
|
|
Income from discontinued operations, net of income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
|
(85.5
|
)
|
|
(1.9
|
)
|
|
94.9
|
|
|
3.6
|
|
|
11.1
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
|
85.7
|
|
|
2.2
|
|
|
(91.2
|
)
|
|
—
|
|
|
(3.3
|
)
|
Net income attributable to Invesco Ltd.
|
|
0.2
|
|
|
0.3
|
|
|
3.7
|
|
|
3.6
|
|
|
7.8
|
|
|
|
Year ended December 31, 2013
|
|||||||||||||
$ in millions
|
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(38.4
|
)
|
|
(37.9
|
)
|
Total operating expenses
|
|
65.8
|
|
|
0.8
|
|
|
6.7
|
|
|
(38.4
|
)
|
|
34.9
|
|
Operating income
|
|
(65.8
|
)
|
|
(0.8
|
)
|
|
(6.2
|
)
|
|
—
|
|
|
(72.8
|
)
|
Equity in earnings of unconsolidated affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
Interest and dividend income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
|
(5.5
|
)
|
Other gains and losses, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.8
|
)
|
|
(11.8
|
)
|
Interest and dividend income of CIP
|
|
199.8
|
|
|
—
|
|
|
—
|
|
|
(9.8
|
)
|
|
190.0
|
|
Interest expense of CIP
|
|
(138.6
|
)
|
|
—
|
|
|
—
|
|
|
15.3
|
|
|
(123.3
|
)
|
Other gains/ (losses) of CIP, net
|
|
3.0
|
|
|
1.7
|
|
|
54.3
|
|
|
2.9
|
|
|
61.9
|
|
Income from continuing operations, net of income taxes
|
|
(1.6
|
)
|
|
0.9
|
|
|
48.1
|
|
|
(11.4
|
)
|
|
36.0
|
|
Income tax provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
|
(1.6
|
)
|
|
0.9
|
|
|
48.1
|
|
|
(11.4
|
)
|
|
36.0
|
|
Income from discontinued operations, net of income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
|
(1.6
|
)
|
|
0.9
|
|
|
48.1
|
|
|
(11.4
|
)
|
|
36.0
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
|
1.4
|
|
|
(0.9
|
)
|
|
(45.2
|
)
|
|
—
|
|
|
(44.7
|
)
|
Net income attributable to Invesco Ltd.
|
|
(0.2
|
)
|
|
—
|
|
|
2.9
|
|
|
(11.4
|
)
|
|
(8.7
|
)
|
(2)
|
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of management and performance fees expensed by the funds and recorded as operating revenues (before consolidation) by the company. These also include the reclassification of the company's gain or loss (representing the changes in the fair value value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses upon consolidation.
|
|
As of December 31, 2015
|
||||||||||
$ 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
|
5,179.6
|
|
|
—
|
|
|
5,179.6
|
|
|
—
|
|
Bonds
|
71.1
|
|
|
—
|
|
|
71.1
|
|
|
—
|
|
Equity securities
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
||||
Equity securities
|
364.6
|
|
|
7.7
|
|
|
—
|
|
|
356.9
|
|
Debt securities
|
31.7
|
|
|
—
|
|
|
—
|
|
|
31.7
|
|
Investments in other private equity funds
|
368.2
|
|
|
—
|
|
|
—
|
|
|
368.2
|
|
Total assets at fair value
|
6,016.1
|
|
|
7.7
|
|
|
5,251.6
|
|
|
756.8
|
|
|
As of December 31, 2014
|
||||||||||
$ 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
|
4,883.9
|
|
|
—
|
|
|
4,883.9
|
|
|
—
|
|
Bonds
|
88.9
|
|
|
—
|
|
|
88.9
|
|
|
—
|
|
Equity securities
|
6.4
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
||||
Equity securities
|
337.9
|
|
|
9.7
|
|
|
—
|
|
|
328.2
|
|
Debt Securities
|
35.7
|
|
|
—
|
|
|
—
|
|
|
35.7
|
|
Investments in other private equity funds
|
410.0
|
|
|
—
|
|
|
—
|
|
|
410.0
|
|
Total assets at fair value
|
5,762.8
|
|
|
9.7
|
|
|
4,979.2
|
|
|
773.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
CLO notes
|
(5,149.6
|
)
|
|
—
|
|
|
—
|
|
|
(5,149.6
|
)
|
Total liabilities at fair value
|
(5,149.6
|
)
|
|
—
|
|
|
—
|
|
|
(5,149.6
|
)
|
|
Year ended December 31, 2015
|
|
Year ended December 31, 2014
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
773.9
|
|
|
(5,149.6
|
)
|
|
500.9
|
|
|
(4,181.7
|
)
|
Adjustment for adoption of ASU 2014-13
|
—
|
|
|
5,149.6
|
|
|
—
|
|
|
—
|
|
Purchases
|
129.6
|
|
|
—
|
|
|
302.3
|
|
|
—
|
|
Sales
|
(146.5
|
)
|
|
—
|
|
|
(138.7
|
)
|
|
—
|
|
Issuances
|
—
|
|
|
—
|
|
|
1.8
|
|
|
(1,995.5
|
)
|
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
706.8
|
|
Deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
339.0
|
|
Gains and losses included in the Consolidated Statements of Income*
|
8.2
|
|
|
—
|
|
|
107.6
|
|
|
(18.2
|
)
|
Transfers to Level 1 and 2**
|
(8.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending balance
|
756.8
|
|
|
—
|
|
|
773.9
|
|
|
(5,149.6
|
)
|
*
|
Included in gains/(losses) of CIP, net in the Consolidated Statement of Income for the year ended
December 31, 2015
are
$79.8 million
in net unrealized
losses
attributable to investments still held at
December 31, 2015
by CIP (year ended
December 31, 2014
:
$60.2 million
net unrealized
gains
attributable to investments still held at
December 31, 2014
).
|
**
|
During the year ended
December 31, 2015
,
$7.8 million
(year ended
December 31, 2014
:
zero
) of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 2 due to the existence of legal lock up requirements of securities following the public offering of the underlying companies. During the year ended December 31, 2015,
$0.6 million
(year ended December 31, 2014:
$0 million
) of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 1 following the public offering of the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security at the end of the period.
|
Assets*
|
|
Fair Value at December 31, 2015 ($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
Private Equity Funds --Equity Securities
|
|
320.0
|
|
Market Comparable
|
|
Revenue Multiple
|
|
NA
|
|
3.2x
|
|
|
|
|
|
|
Discount
|
|
25 - 50%
|
|
25.0%
|
|
|
|
|
|
|
Published valuation and/or broker quotes for similar types of assets
|
|
$25-101 million
|
|
$44.4 million
|
Assets and Liabilities *
|
|
Fair Value at December 31, 2014 ($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
Private Equity Funds --Equity Securities
|
|
273.2
|
|
Market Comparable
|
|
Revenue Multiple
|
|
2 - 4x
|
|
4.0x
|
|
|
|
|
|
|
Discount
|
|
25 - 36%
|
|
30.9%
|
|
|
|
|
|
|
Published valuation and/or broker quotes for similar types of assets
|
|
$27-104 million
|
|
$45.9 million
|
CLO notes
|
|
(5,149.6)
|
|
Discounted Cash Flow- USD
|
|
Assumed Default Rate**
|
|
0.4% - 2.3%
|
|
<1yr: 0.4% >1yr: 2.3%
|
|
|
|
|
|
|
Spread over Libor ***
|
|
102 - 801bps
|
|
228 bps
|
*
|
Excluded from the table above are certain equity and debt securities held by consolidated private equity funds valued using recent private market transactions (
December 31, 2015
:
$61.2 million
;
December 31, 2014
:
$85.0 million
) and third party appraisals (
December 31, 2015
:
$7.3 million
;
December 31, 2014
:
$5.7 million
). At
December 31, 2014
, certain tranches of the consolidated CLOs were valued using third party pricing information. Quantitative unobservable inputs for such valuations were not developed or adjusted by the
company. Investments in other private equity funds as of
December 31, 2015
of
$368.2 million
(as of
December 31, 2014
:
$410.0 million
) are also excluded from the table above as they are valued using the NAV practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date.
|
**
|
Assumed default rates listed in the table above apply to CLOs established prior to 2012. A default rate of
2.0%
was assumed for CLOs established after January 1, 2012.
|
***
|
Lower spreads relate to the more senior tranches in the CLO note structure; higher spreads relate to the less senior tranches.
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||
in millions, except term data
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
Private equity funds
(1)
|
|
$368.2
|
|
$218.1
|
|
2.8 years
|
|
$410.0
|
|
$196.3
|
|
2.6 years
|
(1)
|
These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.
|
(2)
|
These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.
|
|
Years ended December 31,
|
|||||||
$ in millions
|
2015
|
|
2014
|
|
2013
|
|||
Affiliated operating revenues:
|
|
|
|
|
|
|||
Investment management fees
|
3,565.8
|
|
|
3,609.8
|
|
|
3,208.2
|
|
Service and distribution fees
|
854.0
|
|
|
880.5
|
|
|
856.4
|
|
Performance fees
|
29.2
|
|
|
39.0
|
|
|
44.0
|
|
Other
|
108.5
|
|
|
120.5
|
|
|
108.5
|
|
Total affiliated operating revenues
|
4,557.5
|
|
|
4,649.8
|
|
|
4,217.1
|
|
|
As of December 31,
|
||||
$ in millions
|
2015
|
|
2014
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
383.3
|
|
|
474.9
|
|
Unsettled fund receivables
|
166.7
|
|
|
254.2
|
|
Accounts receivable
|
317.7
|
|
|
332.9
|
|
Investments
|
982.7
|
|
|
848.8
|
|
Assets held for policyholders
|
6,051.2
|
|
|
1,697.5
|
|
Other assets
|
3.4
|
|
|
7.9
|
|
Total affiliated asset balances
|
7,905.0
|
|
|
3,616.2
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
105.0
|
|
|
138.8
|
|
Accounts payable and accrued expenses
|
82.9
|
|
|
61.9
|
|
Unsettled fund payables
|
248.2
|
|
|
322.1
|
|
Total affiliated liability balances
|
436.1
|
|
|
522.8
|
|
|
Years ended December 31,
|
||||
$ in millions
|
2014
|
|
2013
|
||
Operating revenue
|
0.3
|
|
|
162.6
|
|
Operating expenses
|
(7.0
|
)
|
|
(139.2
|
)
|
Gain on sale
|
1.4
|
|
|
77.5
|
|
Income/(loss) from discontinued operations before income taxes
|
(5.3
|
)
|
|
100.9
|
|
Income tax provision
|
1.9
|
|
|
(36.4
|
)
|
Income/(loss) from discontinued operations, net of taxes
|
(3.4
|
)
|
|
64.5
|
|
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
|
Second Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including May 15, 2014, incorporated by reference to Exhibit 3.2 to Invesco’s Quarterly Report of Form 10-Q, filed with the Securities and Exchange Commission on July 31, 2014
|
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 November 8, 2012, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the Guarantors and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 9, 2012
|
4.3
|
Supplemental Indenture, dated November 8, 2012, for Invesco Finance PLC’s 3.125% Senior Notes due 2022, among Invesco Finance PLC, the Guarantors and The Bank of New York Mellon, as trustee, 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 9, 2012
|
4.4
|
Form of 3.125% Senior Notes due 2022 (included in Exhibit 4.3 hereto)
|
4.5
|
Second Supplemental Indenture, dated November 12, 2013, between Invesco Finance plc, the Company and The Bank of New York Mellon, as trustee, 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 12, 2013
|
4.6
|
Third Supplemental Indenture, dated November 12, 2013, between Invesco Finance plc, the Company and The Bank of New York Mellon, as trustee, 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 12, 2013
|
4.7
|
Fourth Supplemental Indenture, dated October 14, 2015, between Invesco Finance plc, the Company and The Bank of New York Mellon, as trustee, incorporated by reference to exhibit 4.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on October 14, 2015
|
4.8
|
Form of 4.000% Senior Notes due 2024 (included in Exhibit 4.5)
|
4.9
|
Form of 5.375% Senior Notes due 2043 (included in Exhibit 4.6)
|
4.10
|
Form of 3.750% Senior Notes due 2026 (included in Exhibit 4.7)
|
10.1
|
Third Amended and Restated Credit Agreement, dated as of August 7, 2015, among Invesco Finance PLC, Invesco Ltd., the banks, financial institutions and other institutional lenders from time to time a party thereto and Bank of America, N.A., as administrative agent, incorporated by reference to exhibit 10.1 to Invesco’s Quarterly Report on Form 10-Q for the period ended September 30, 2015, filed with the Securities and Exchange Commission on October 29, 2015
|
10.2
|
Invesco Ltd. 2011 Global Equity Incentive Plan, as amended and restated effective February 12, 2015, incorporated by reference to exhibit 10.5 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.3
|
Form of Restricted Stock Award Agreement - Time Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.12 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.4
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.13 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.5
|
Form of Restricted Stock Award Agreement - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.14 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.6
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.15 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.7
|
Form of Restricted Stock Award Agreement - Time Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.16 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.8
|
Form of Restricted Stock Award Agreement - Performance Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.17 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.9
|
Form of Restricted Stock Unit Award Agreement - Time Vesting – Canada (Tranches 1-3) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.18 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.10
|
Form of Restricted Stock Unit Award Agreement - Time Vesting – Canada (Tranche 4) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.19 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.11
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting – Canada (Tranches 1-3) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.20 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.12
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting – Canada (Tranche 4) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.21 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.13
|
Form of Restricted Stock Award Agreement - Time Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.16 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.14
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.17 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.15
|
Form of Restricted Stock Award Agreement - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.18 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.16
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.19 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.17
|
Form of Restricted Stock Award Agreement - Time Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.20 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.18
|
Form of Restricted Stock Award Agreement - Performance Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.21 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.19
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - Canada (Tranches 1-3) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.22 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.20
|
Form of Restricted Stock Unit Award Agreement - Time Vesting - Canada (Tranche 4) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.23 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.21
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - Canada (Tranches 1-3) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.24 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.22
|
Form of Restricted Stock Unit Award Agreement - Performance Vesting - Canada (Tranche 4) - under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.25 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015
|
10.23
|
Form of Restricted Stock Award Agreement (Feb 2016) - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan
|
10.24
|
Form of Restricted Stock Unit Award Agreement (Feb 2016) - Performance Vesting - under the Invesco Ltd. 2011 Global Equity Incentive Plan
|
10.25
|
Form of Restricted Stock Award Agreement (Feb 2016) - Performance Vesting - with respect to Martin L. Flanagan - under the Invesco Ltd. 2011 Global Equity Incentive Plan
|
10.26
|
Form of Restricted Stock Unit Award Agreement (Feb 2016) - Performance Vesting - Canada - under the Invesco Ltd. 2011 Global Equity Incentive Plan
|
10.27
|
Form of Award Agreement for Non-Executive Directors under the Invesco Ltd. 2011 Global Equity Incentive Plan, incorporated by reference to exhibit 10.22 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
10.28
|
Form of Aircraft Time Sharing Agreement incorporated by reference to exhibit 10.19 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 21, 2014
|
10.29
|
Invesco Ltd. Executive Incentive Bonus Plan, as amended and restated effective January 1, 2013, incorporated by reference to Appendix A to Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 1, 2013
|
10.30
|
Invesco Ltd. Amended and Restated 2005 Non-Qualified Deferred Compensation Plan, effective as of January 1, 2009, incorporated by reference to exhibit 10.8 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on February 27, 2009
|
10.31
|
Deferred Fees Share Plan, as amended and restated effective December 10, 2008, incorporated by reference to exhibit 10.13 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on February 27, 2009
|
10.32
|
Second Amended and Restated Master Employment Agreement, dated April 1, 2011, between Invesco Ltd. and Martin L. Flanagan, incorporated by reference to exhibit 10.1 to Invesco’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, filed with the Securities and Exchange Commission on April 29, 2011
|
10.33
|
Global Partner Agreement, dated November 10, 2005, between AMVESCAP PLC and Loren M. Starr, incorporated by reference to exhibit 10.14 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 29, 2008
|
10.34
|
Global Partner Agreement, dated January 1, 2001, between AIM Funds Management Inc. and Philip A. Taylor, incorporated by reference to exhibit 10.15 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 29, 2008
|
10.35
|
Global Partners Employment Contract, dated April 1, 2000, between INVESCO Pacific Holdings Limited and Andrew Lo, incorporated by reference to exhibit 10.17 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on February 29, 2008
|
10.36
|
Senior Managing Director Agreement, between Andrew Lo and Invesco Group Services, Inc., effective as of January 1, 2010, incorporated by reference to exhibit 10.32 to Invesco’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 24, 2012
|
Invesco Ltd.
|
|
|
|
By:
|
/s/ MARTIN L. FLANAGAN
|
Name:
|
Martin L. Flanagan
|
Title:
|
President and Chief Executive Officer
|
|
|
Date:
|
February 19, 2016
|
Name
|
Title
|
Date
|
|
|
|
/s/ MARTIN L. FLANAGAN
|
Chief Executive Officer (Principal Executive Officer) and President; Director
|
February 19, 2016
|
Martin L. Flanagan
|
|
|
/s/ LOREN M. STARR
|
Senior Managing Director and Chief Financial Officer (Principal Financial Officer)
|
February 19, 2016
|
Loren M. Starr
|
|
|
/s/ RODERICK G.H. ELLIS
|
Group Controller and Chief Accounting Officer (Principal Accounting Officer)
|
February 19, 2016
|
Roderick G.H. Ellis
|
|
|
/s/ BEN F. JOHNSON III
|
Chairman and Director
|
February 19, 2016
|
Ben F. Johnson III
|
|
|
/s/ JOSEPH R. CANION
|
Director
|
February 19, 2016
|
Joseph R. Canion
|
|
|
/s/ C. ROBERT HENRIKSON
|
Director
|
February 19, 2016
|
C. Robert Henrikson
|
|
|
/s/ DENIS KESSLER
|
Director
|
February 19, 2016
|
Denis Kessler
|
|
|
/s/ EDWARD P. LAWRENCE
|
Director
|
February 19, 2016
|
Edward P. Lawrence
|
|
|
/s/ SIR NIGEL SHEINWALD
|
Director
|
February 19, 2016
|
Sir Nigel Sheinwald
|
|
|
/s/ G. RICHARD WAGONER, JR.
|
Director
|
February 19, 2016
|
G. Richard Wagoner, Jr.
|
|
|
/s/ PHOEBE A. WOOD
|
Director
|
February 19, 2016
|
Phoebe A. Wood
|
|
|
(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 or unsatisfactory performance, as determined in the sole discretion of the Head of Human Resources, 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 unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formulas
|
a.
|
On the second anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the First Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
First Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
b.
|
On the third anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the Second Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
Second Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
(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)
|
as of your Termination of Service due to death or Disability, or
|
(c)
|
as of your involuntary Termination of Service, other than for Cause or unsatisfactory performance, as determined in the sole discretion by the Head of Human Resources, provided that you sign and do not revoke a severance agreement in the form stipulated by the Company within 60 days after your Termination of Service or such other time as the Company may determine and the severance agreement has become irrevocable, 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 unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formulas
|
a.
|
On the second anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the First Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
First Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
b.
|
On the third anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the Second Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
Second Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
(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 or unsatisfactory performance, as determined in the sole discretion of the Head of Human Resources, 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 unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formulas
|
a.
|
On the second anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the First Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
First Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
b.
|
On the third anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the Second Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
Second Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
(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 or unsatisfactory performance, as determined in the sole discretion of the Head of Human Resources, 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 unsatisfactory performance, or (ii) by you for Good Reason.
|
I.
|
Definitions
|
II.
|
Performance Vesting Formulas
|
a.
|
On the second anniversary of the Grant Date, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the First Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
First Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
b.
|
On December 15, 2018, the number of RSUs that shall become vested and non-forfeitable shall equal 50% of the Target Total Award multiplied by the Vesting Percentage associated with the Second Grant Average AOM on the chart below, rounded down to the nearest full Share, as the same shall be calculated by the Committee. The Committee’s good faith calculation of the number of RSUs that become vested and non-forfeitable pursuant to the Performance Vesting Formula shall be final and binding upon you and the Company. Vesting to range from 0% to 150%; straight line interpolation to be used for actual results.
|
Second Grant Average AOM (%)
|
≤28
|
29
|
30
|
31
|
32
|
33
|
34
|
35
|
36-44
|
45
|
46
|
47
|
48
|
49
|
50
|
51
|
52
|
53
|
≥54
|
AOM Vesting Percentage
|
0
|
25
|
50
|
75
|
80
|
85
|
90
|
95
|
100
|
105
|
110
|
115
|
120
|
125
|
130
|
135
|
140
|
145
|
150
|
Company Name
|
|
Jurisdiction
|
Atlantic Wealth Holdings Limited
|
|
Oxfordshire
|
Atlantic Wealth Management Limited
|
|
Oxfordshire
|
C M Investment Nominees Limited
|
|
Oxfordshire
|
Chancellor Citiventure 96 Partner (Cayman) Ltd.
|
|
Grand Cayman
|
Coff Associates (Cayman) Limited
|
|
Grand Cayman
|
CPCO Associates (Cayman) Limited
|
|
Grand Cayman
|
Elliot Associates Limited
|
|
Oxfordshire
|
Finemost Limited
|
|
Oxfordshire
|
Fund Management Company
|
|
Texas
|
Gatefold Hayes GP Limited
|
|
United Kingdom
|
Greenspruce GP Limited
|
|
United Kingdom
|
Huaneng Invesco WLR Investment Consulting Company Ltd.
|
|
China
|
HVH Immobilien- und Beteiligungs GmbH
|
|
Germany
|
HVH USA, Inc.
|
|
Delaware
|
Hyderabad IT Support Services Private Limited
|
|
India
|
India Asset Recovery Management Limited
|
|
Mauritius
|
INVESCO (B.V.I.) NOMINEES LIMITED
|
|
Virgin Islands, British
|
Invesco Administration Services Limited
|
|
Oxfordshire
|
Invesco Advisers, Inc.
|
|
Delaware
|
Invesco Asia Pacific Private Equity Investment and Fund Management Consulting (Shenzhen)
|
|
China
|
INVESCO Asset Management (Bermuda) Ltd
|
|
Bermuda
|
Invesco Asset Management (Japan) Limited
|
|
Japan
|
Invesco Asset Management Asia Limited
|
|
Hong Kong
|
Invesco Asset Management Australia (Holdings) Ltd
|
|
Victoria
|
Invesco Asset Management Deutschland GmbH
|
|
Germany
|
INVESCO Asset Management Ireland Holdings Limited
|
|
Ireland
|
Invesco Asset Management Limited
|
|
Oxfordshire
|
Invesco Asset Management Pacific Limited
|
|
Hong Kong
|
Invesco Asset Management SA
|
|
France
|
Invesco Asset Management Singapore Ltd
|
|
Singapore
|
Invesco Australia Limited
|
|
Victoria
|
Invesco Canada Holdings Inc.
|
|
Ontario
|
Invesco Canada Ltd.
|
|
Ontario
|
Invesco Capital Markets, Inc.
|
|
Delaware
|
Invesco (Cayman Islands) Ltd.
|
|
Cayman Islands
|
Invesco Continental Europe Services SA
|
|
Luxembourg
|
Invesco Distributors, Inc.
|
|
Delaware
|
Invesco Far East Limited
|
|
Oxfordshire
|
Invesco Finance Inc.
|
|
Delaware
|
Invesco Finance PLC
|
|
Oxfordshire
|
Invesco Financial Services Ltd.
|
|
Canada
|
Company Name
|
|
Jurisdiction
|
Invesco Fund Managers Limited
|
|
Oxfordshire
|
INVESCO Global Asset Management Limited
|
|
Ireland
|
Invesco Global Asset Management (Bermuda) Ltd.
|
|
Bermuda
|
Invesco Global Direct Real Estate Feeder GP Ltd.
|
|
Ontario
|
Invesco Global Direct Real Estate GP Ltd
|
|
Ontario
|
Invesco Global Investment Funds Limited
|
|
Oxfordshire
|
Invesco Global Real Estate Asia Pacific Inc.
|
|
Delaware
|
Invesco Group Limited
|
|
Oxfordshire
|
Invesco Group Services, Inc.
|
|
Delaware
|
Invesco GT Asset Management Limited
|
|
Oxfordshire
|
Invesco Holding Company Limited
|
|
Oxfordshire
|
INVESCO Holland B.V.
|
|
Netherlands
|
Invesco Hong Kong Limited
|
|
Hong Kong
|
Invesco (Hyderabad) Private Limited
|
|
India
|
Invesco Inc.
|
|
Nova Scotia
|
Invesco Insurance Agency, Inc.
|
|
Delaware
|
INVESCO International (Southern Africa) Limited
|
|
South Africa
|
Invesco International Holdings Limited
|
|
Oxfordshire
|
INVESCO International Limited
|
|
Great Britian
|
Invesco Investment Advisers LLC
|
|
Delaware
|
Invesco Investment Services, Inc.
|
|
Delaware
|
Invesco Investments (Bermuda) Ltd.
|
|
Bermuda
|
Invesco IP Holdings (Canada) Ltd
|
|
Canada
|
Invesco Korean Real Estate Holdings LLC
|
|
Delaware
|
Invesco Ltd.
|
|
Bermuda
|
INVESCO Management GmbH
|
|
Germany
|
Invesco Management Group, Inc.
|
|
Delaware
|
INVESCO Management S.A.
|
|
Luxembourg
|
Invesco North American Group Limited
|
|
Oxfordshire
|
Invesco North American Holdings, Inc.
|
|
Delaware
|
Invesco Pacific Group Limited
|
|
Oxfordshire
|
Invesco Perpetual Life Limited
|
|
Oxfordshire
|
INVESCO Pacific Partner Ltd.
|
|
Bermuda
|
INVESCO Polska Sp.z.o.o.
|
|
Poland
|
Invesco PowerShares Capital Management LLC
|
|
Delaware
|
INVESCO Private Capital Investments, Inc.
|
|
Delaware
|
Invesco Private Capital, Inc.
|
|
Delaware
|
Invesco Real Estate Investment (Asia) LLC
|
|
Delaware
|
Invesco Real Estate Investment Asia Pacific Limited
|
|
Hong Kong
|
Invesco Real Estate Korea
|
|
Republic of Korea
|
Invesco Real Estate Limited
|
|
United Kingdom
|
Invesco Real Estate Management S.a.r.l.
|
|
Luxembourg
|
INVESCO Real Estate s.r.o.
|
|
Czech Republic
|
Invesco Realty Asia I, Ltd.
|
|
Cayman Island
|
Company Name
|
|
Jurisdiction
|
INVESCO Realty, Inc.
|
|
Delaware
|
Invesco Savings Scheme (Nominees) Limited
|
|
Oxfordshire
|
Invesco Senior Secured Management, Inc.
|
|
Delaware
|
Invesco Taiwan Limited
|
|
Taiwan
|
Invesco Trust Company
|
|
Texas
|
Invesco UK Holdings Limited
|
|
Oxfordshire
|
Invesco UK Limited
|
|
Oxfordshire
|
Invesco WLR Limited
|
|
Hong Kong
|
IRE AF II, Ltd.
|
|
Cayman Island
|
Invesco Real Estate Advisors (Shanghai) Ltd
|
|
Shanghai
|
IRE (China) Limited
|
|
China
|
IRE (Cayman) Limited
|
|
Cayman Island
|
IVZ Bahamas Private Limited
|
|
Lyford Cay, Nassau
|
IVZ Finance Limited
|
|
Ireland
|
IVZ Finance S.a.r.l.
|
|
Luxembourg
|
IVZ UK Limited
|
|
Oxfordshire
|
IVZ Mauritius Services Private Limited
|
|
Port Louis
|
IVZ, Inc.
|
|
Delaware
|
James Bryant Limited
|
|
Oxfordshire
|
PCM Properties LLC
|
|
Illinois
|
Jemstep, Inc
|
|
Delaware
|
Perpetual Limited
|
|
Oxfordshire
|
Perpetual Portfolio Management Limited
|
|
Oxfordshire
|
Perpetual Unit Trust Management (Nominees) Limited
|
|
Oxfordshire
|
POCZTYLION - ARKA POWSZECHNE TOWARZYSTWO EMERYTALNE SPOLKA AKCYJNA
|
|
Poland
|
Ross CG Management LP
|
|
New York
|
Ross Expansion Associates LP
|
|
New York
|
Sermon Lane Nominees Limited
|
|
Oxfordshire
|
Sovereign G/.P. Holdings Inc.
|
|
Delaware
|
Tower Asiapac HoldCo. LLC
|
|
Delaware
|
Trimark Investments Ltd.
|
|
Canada
|
Van Kampen Exchange Corp.
|
|
California
|
Van Kampen Seed LLC
|
|
Delaware
|
VV Immobilien Verwaltungs GmbH
|
|
Germany
|
VV Immobilien Verwaltungs und Beteiligungs GmbH
|
|
Germany
|
VV USA LLC
|
|
New Castle County
|
WLR China Energy Associates Ltd
|
|
Cayman Islands
|
WLR Euro Wagon Management Ltd.
|
|
New York
|
W.L. Ross & Co. (India) LLC
|
|
Delaware
|
W.L. Ross & Co., LLC
|
|
Delaware
|
W.L. Ross Dip Management LLC
|
|
New York
|
W.L. Ross (India) Private Limited
|
|
New York
|
1.
|
I have reviewed this Annual Report on Form 10-K of Invesco Ltd.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
a)
|
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;
|
b)
|
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;
|
c)
|
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
|
d)
|
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
|
5.
|
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):
|
a)
|
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
|
b)
|
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 19, 2016
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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 19, 2016
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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.
|
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 19, 2016
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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.
|
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 19, 2016
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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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