x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
|
25-1111467
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Federated Investors Tower
Pittsburgh, Pennsylvania
|
|
15222-3779
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
o
|
|
|
|
|
|||
Non-accelerated filer
|
|
o
|
|
Smaller reporting company
|
|
o
|
|
Table of Contents
|
|
|
|
|
|
|||
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Item 1.
|
|
|
|
|
||
|
|
||
|
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||
|
|
||
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||
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Item 2.
|
||
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Item 3.
|
||
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Item 4.
|
||
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|||
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Item 1.
|
||
|
Item 1A.
|
||
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Item 2.
|
||
|
Item 6.
|
||
Special Note Regarding Forward-Looking Information
|
Consolidated Balance Sheets
|
(dollars in thousands)
|
(unaudited)
|
|
|
September 30,
2011 |
|
December 31,
2010 |
||||
ASSETS
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
132,796
|
|
|
$
|
198,756
|
|
Investments
|
|
189,393
|
|
|
134,885
|
|
||
Receivables – affiliates
|
|
10,542
|
|
|
11,651
|
|
||
Receivables – other, net of reserve of $190 and $60, respectively
|
|
8,573
|
|
|
9,577
|
|
||
Prepaid expenses
|
|
16,460
|
|
|
15,861
|
|
||
Current deferred tax asset, net
|
|
4,329
|
|
|
1,129
|
|
||
Other current assets
|
|
1,222
|
|
|
1,311
|
|
||
Total current assets
|
|
363,315
|
|
|
373,170
|
|
||
Long-Term Assets
|
|
|
|
|
||||
Goodwill
|
|
636,182
|
|
|
635,313
|
|
||
Renewable investment advisory rights
|
|
64,600
|
|
|
64,500
|
|
||
Other intangible assets, net of accumulated amortization of $58,274 and $112,502, respectively
|
|
15,240
|
|
|
21,012
|
|
||
Deferred sales commissions, net of accumulated amortization of $5,873 and $57,480, respectively
|
|
9,903
|
|
|
10,317
|
|
||
Property and equipment, net of accumulated depreciation of $47,709 and $41,981, respectively
|
|
39,139
|
|
|
38,516
|
|
||
Other long-term assets
|
|
16,802
|
|
|
10,676
|
|
||
Total long-term assets
|
|
781,866
|
|
|
780,334
|
|
||
Total assets
|
|
$
|
1,145,181
|
|
|
$
|
1,153,504
|
|
LIABILITIES
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Short-term debt – recourse
|
|
$
|
42,500
|
|
|
$
|
42,500
|
|
Accounts payable and accrued expenses
|
|
39,882
|
|
|
86,191
|
|
||
Accrued compensation and benefits
|
|
49,088
|
|
|
61,129
|
|
||
Other current liabilities
|
|
54,757
|
|
|
24,532
|
|
||
Total current liabilities
|
|
186,227
|
|
|
214,352
|
|
||
Long-Term Liabilities
|
|
|
|
|
||||
Long-term debt – recourse
|
|
329,375
|
|
|
361,250
|
|
||
Long-term deferred tax liability, net
|
|
66,910
|
|
|
51,380
|
|
||
Other long-term liabilities
|
|
32,046
|
|
|
32,807
|
|
||
Total long-term liabilities
|
|
428,331
|
|
|
445,437
|
|
||
Total liabilities
|
|
614,558
|
|
|
659,789
|
|
||
Commitments and contingencies (Note (15))
|
|
|
|
|
||||
TEMPORARY EQUITY
|
|
|
|
|
||||
Redeemable noncontrolling interests in subsidiaries
|
|
519
|
|
|
1,543
|
|
||
PERMANENT EQUITY
|
|
|
|
|
||||
Federated Investors shareholders’ equity
|
|
|
|
|
||||
Common stock:
|
|
|
|
|
||||
Class A, no par value, 20,000 shares authorized, 9,000 shares issued and outstanding
|
|
189
|
|
|
189
|
|
||
Class B, no par value, 900,000,000 shares authorized, 129,505,456 shares issued
|
|
248,047
|
|
|
237,208
|
|
||
Additional paid-in capital from treasury stock transactions
|
|
340
|
|
|
135
|
|
||
Retained earnings
|
|
1,064,552
|
|
|
1,036,571
|
|
||
Treasury stock, at cost, 25,748,016 and 25,841,365 shares Class B common stock, respectively
|
|
(771,817
|
)
|
|
(778,609
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
|
(12,460
|
)
|
|
(3,695
|
)
|
||
Total Federated Investors, Inc. shareholders’ equity
|
|
528,851
|
|
|
491,799
|
|
||
Nonredeemable noncontrolling interest in subsidiary
|
|
1,253
|
|
|
373
|
|
||
Total permanent equity
|
|
530,104
|
|
|
492,172
|
|
||
Total liabilities, temporary equity and permanent equity
|
|
$
|
1,145,181
|
|
|
$
|
1,153,504
|
|
Consolidated Statements of Income
|
(dollars in thousands, except per share data)
|
(unaudited)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
||||||||
Investment advisory fees, net-affiliates
|
|
$
|
123,510
|
|
|
$
|
148,051
|
|
|
$
|
400,754
|
|
|
$
|
428,364
|
|
Investment advisory fees, net-other
|
|
15,889
|
|
|
15,732
|
|
|
47,361
|
|
|
45,866
|
|
||||
Administrative service fees, net-affiliates
|
|
54,928
|
|
|
53,085
|
|
|
163,527
|
|
|
161,233
|
|
||||
Other service fees, net-affiliates
|
|
16,056
|
|
|
21,788
|
|
|
55,790
|
|
|
60,160
|
|
||||
Other service fees, net-other
|
|
2,952
|
|
|
2,857
|
|
|
9,346
|
|
|
8,821
|
|
||||
Other, net
|
|
713
|
|
|
660
|
|
|
1,930
|
|
|
2,182
|
|
||||
Total revenue
|
|
214,048
|
|
|
242,173
|
|
|
678,708
|
|
|
706,626
|
|
||||
Operating Expenses
|
|
|
|
|
|
|
|
|
||||||||
Compensation and related
|
|
57,930
|
|
|
61,387
|
|
|
184,819
|
|
|
186,469
|
|
||||
Distribution
|
|
54,440
|
|
|
68,800
|
|
|
176,930
|
|
|
190,068
|
|
||||
Professional service fees
|
|
9,437
|
|
|
9,401
|
|
|
44,171
|
|
|
9,596
|
|
||||
Office and occupancy
|
|
6,202
|
|
|
5,841
|
|
|
18,436
|
|
|
16,990
|
|
||||
Systems and communications
|
|
5,825
|
|
|
5,362
|
|
|
17,131
|
|
|
16,996
|
|
||||
Advertising and promotional
|
|
3,887
|
|
|
2,724
|
|
|
9,889
|
|
|
7,480
|
|
||||
Travel and related
|
|
2,809
|
|
|
2,692
|
|
|
8,501
|
|
|
8,005
|
|
||||
Intangible asset related
|
|
1,263
|
|
|
3,397
|
|
|
6,672
|
|
|
16,522
|
|
||||
Amortization of deferred sales commissions
|
|
1,338
|
|
|
2,987
|
|
|
5,999
|
|
|
9,274
|
|
||||
Other
|
|
3,906
|
|
|
4,494
|
|
|
10,566
|
|
|
14,467
|
|
||||
Total operating expenses
|
|
147,037
|
|
|
167,085
|
|
|
483,114
|
|
|
475,867
|
|
||||
Operating income
|
|
67,011
|
|
|
75,088
|
|
|
195,594
|
|
|
230,759
|
|
||||
Nonoperating Income (Expenses)
|
|
|
|
|
|
|
|
|
||||||||
Investment income, net
|
|
1,022
|
|
|
1,049
|
|
|
3,206
|
|
|
2,058
|
|
||||
(Loss) gain on securities, net
|
|
(2,293
|
)
|
|
3,426
|
|
|
515
|
|
|
835
|
|
||||
Debt expense – recourse
|
|
(3,972
|
)
|
|
(4,958
|
)
|
|
(13,187
|
)
|
|
(10,196
|
)
|
||||
Other, net
|
|
(83
|
)
|
|
(65
|
)
|
|
(192
|
)
|
|
(310
|
)
|
||||
Total nonoperating expenses, net
|
|
(5,326
|
)
|
|
(548
|
)
|
|
(9,658
|
)
|
|
(7,613
|
)
|
||||
Income before income taxes
|
|
61,685
|
|
|
74,540
|
|
|
185,936
|
|
|
223,146
|
|
||||
Income tax provision
|
|
23,165
|
|
|
26,477
|
|
|
69,477
|
|
|
82,613
|
|
||||
Net income including noncontrolling interests in subsidiaries
|
|
$
|
38,520
|
|
|
$
|
48,063
|
|
|
$
|
116,459
|
|
|
$
|
140,533
|
|
Less: Net income attributable to the noncontrolling interests in subsidiaries
|
|
200
|
|
|
5,007
|
|
|
2,495
|
|
|
7,820
|
|
||||
Net income
|
|
$
|
38,320
|
|
|
$
|
43,056
|
|
|
$
|
113,964
|
|
|
$
|
132,713
|
|
Amounts attributable to Federated Investors, Inc.
|
|
|
|
|
|
|
||||||||||
Earnings per common share – Basic and Diluted
|
|
$
|
0.37
|
|
|
$
|
0.42
|
|
|
$
|
1.09
|
|
|
$
|
1.27
|
|
Cash dividends per share
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.72
|
|
|
$
|
1.98
|
|
Consolidated Statements of Changes in Equity
|
(dollars in thousands)
|
(unaudited)
|
|
|
Federated Investors, Inc. Shareholders
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
Common
Stock
|
|
Additional
Paid-in
Capital from
Treasury
Stock
Transactions
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss, Net of
Tax
|
|
Total
Shareholders’
Equity
|
|
Nonredeemable
Noncontrolling
Interest in
Subsidiary
|
|
Total
Permanent
Equity
|
|
Redeemable
Noncontrolling
Interests in
Subsidiaries/
Temporary
Equity
|
||||||||||||||||||
Balance at December 31, 2009
|
|
$
|
217,009
|
|
|
$
|
0
|
|
|
$
|
1,105,073
|
|
|
$
|
(795,389
|
)
|
|
$
|
1,514
|
|
|
$
|
528,207
|
|
|
$
|
608
|
|
|
$
|
528,815
|
|
|
$
|
13,913
|
|
Net Income
|
|
0
|
|
|
0
|
|
|
132,713
|
|
|
0
|
|
|
0
|
|
|
132,713
|
|
|
7,420
|
|
|
140,133
|
|
|
400
|
|
|||||||||
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Unrealized gain on securities available for sale, net of reclassification adjustment
1
|
|
0
|
|
|
0
|
|
|
16
|
|
|
0
|
|
|
890
|
|
|
906
|
|
|
0
|
|
|
906
|
|
|
0
|
|
|||||||||
Unrealized loss on interest rate swap, net of reclassification adjustment
2
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(11,947
|
)
|
|
(11,947
|
)
|
|
0
|
|
|
(11,947
|
)
|
|
0
|
|
|||||||||
Foreign currency translation loss
3
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(303
|
)
|
|
(303
|
)
|
|
0
|
|
|
(303
|
)
|
|
(35
|
)
|
|||||||||
Comprehensive Income
4
|
|
|
|
|
|
|
|
|
|
|
|
121,369
|
|
|
7,420
|
|
|
128,789
|
|
|
|
|||||||||||||||
Subscriptions – redeemable noncontrolling interest holders
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
7,467
|
|
|||||||||
Stock award activity
|
|
15,472
|
|
|
0
|
|
|
(8,283
|
)
|
|
8,283
|
|
|
0
|
|
|
15,472
|
|
|
0
|
|
|
15,472
|
|
|
0
|
|
|||||||||
Dividends declared/Distributions to noncontrolling interest in subsidiaries
|
|
0
|
|
|
0
|
|
|
(203,423
|
)
|
|
0
|
|
|
0
|
|
|
(203,423
|
)
|
|
(7,536
|
)
|
|
(210,959
|
)
|
|
(2,134
|
)
|
|||||||||
Exercise of stock options
|
|
240
|
|
|
153
|
|
|
(129
|
)
|
|
660
|
|
|
0
|
|
|
924
|
|
|
0
|
|
|
924
|
|
|
0
|
|
|||||||||
Purchase of treasury stock
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(9,289
|
)
|
|
0
|
|
|
(9,289
|
)
|
|
0
|
|
|
(9,289
|
)
|
|
0
|
|
|||||||||
Balance at September 30, 2010
|
|
$
|
232,721
|
|
|
$
|
153
|
|
|
$
|
1,025,967
|
|
|
$
|
(795,735
|
)
|
|
$
|
(9,846
|
)
|
|
$
|
453,260
|
|
|
$
|
492
|
|
|
$
|
453,752
|
|
|
$
|
19,611
|
|
Balance at December 31, 2010
|
|
$
|
237,397
|
|
|
$
|
135
|
|
|
$
|
1,036,571
|
|
|
$
|
(778,609
|
)
|
|
$
|
(3,695
|
)
|
|
$
|
491,799
|
|
|
$
|
373
|
|
|
$
|
492,172
|
|
|
$
|
1,543
|
|
Net Income
|
|
0
|
|
|
0
|
|
|
113,964
|
|
|
0
|
|
|
0
|
|
|
113,964
|
|
|
2,384
|
|
|
116,348
|
|
|
111
|
|
|||||||||
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Unrealized loss on securities available for sale, net of reclassification adjustment
1
|
|
0
|
|
|
0
|
|
|
(3
|
)
|
|
0
|
|
|
(5,810
|
)
|
|
(5,813
|
)
|
|
0
|
|
|
(5,813
|
)
|
|
0
|
|
|||||||||
Unrealized loss on interest rate swap, net of reclassification adjustment
2
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2,934
|
)
|
|
(2,934
|
)
|
|
0
|
|
|
(2,934
|
)
|
|
0
|
|
|||||||||
Foreign currency translation loss
3
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(21
|
)
|
|
(21
|
)
|
|
0
|
|
|
(21
|
)
|
|
(3
|
)
|
|||||||||
Comprehensive Income
4
|
|
|
|
|
|
|
|
|
|
|
|
105,196
|
|
|
2,384
|
|
|
107,580
|
|
|
|
|||||||||||||||
Subscriptions – redeemable noncontrolling interest holders
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
6,511
|
|
|||||||||
Deconsolidation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(7,626
|
)
|
|||||||||
Stock award activity
|
|
14,812
|
|
|
(457
|
)
|
|
(10,948
|
)
|
|
11,428
|
|
|
0
|
|
|
14,835
|
|
|
0
|
|
|
14,835
|
|
|
0
|
|
|||||||||
Dividends declared/Distributions to noncontrolling interest in subsidiaries
|
|
0
|
|
|
0
|
|
|
(75,032
|
)
|
|
0
|
|
|
0
|
|
|
(75,032
|
)
|
|
(1,504
|
)
|
|
(76,536
|
)
|
|
(17
|
)
|
|||||||||
Stock option activity
|
|
(3,973
|
)
|
|
662
|
|
|
0
|
|
|
14,468
|
|
|
0
|
|
|
11,157
|
|
|
0
|
|
|
11,157
|
|
|
0
|
|
|||||||||
Purchase of treasury stock
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(19,104
|
)
|
|
0
|
|
|
(19,104
|
)
|
|
0
|
|
|
(19,104
|
)
|
|
0
|
|
|||||||||
Balance at September 30, 2011
|
|
$
|
248,236
|
|
|
$
|
340
|
|
|
$
|
1,064,552
|
|
|
$
|
(771,817
|
)
|
|
$
|
(12,460
|
)
|
|
$
|
528,851
|
|
|
$
|
1,253
|
|
|
$
|
530,104
|
|
|
$
|
519
|
|
1
|
The tax related to this line item was
$4,247
and
$(662)
for the
nine
months ended
September 30, 2011
and 2010, respectively.
|
2
|
The tax related to this line item was
$2,107
and
$6,433
for the
nine
months ended
September 30, 2011
and 2010, respectively.
|
3
|
The tax related to this line item was
$11
and
$163
for the
nine
months ended
September 30, 2011
and 2010, respectively.
|
4
|
Comprehensive income for Total Shareholders’ Equity, Nonredeemable Noncontrolling Interest in Subsidiary and Total Permanent Equity was
$29,726
,
$165
and
$29,891
, respectively, for the three months ended
September 30, 2011
. Comprehensive income for Total Shareholders’ Equity, Nonredeemable Noncontrolling Interest in Subsidiary and Total Permanent Equity was
$42,879
,
$2,446
and
$45,325
, respectively, for the three months ended
September 30, 2010
.
|
Consolidated Statements of Cash Flows
|
(dollars in thousands)
|
(unaudited)
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
|
||||||
|
|
2011
|
|
2010
|
||||
Operating Activities
|
|
|
|
|
||||
Net income including noncontrolling interest in subsidiaries
|
|
$
|
116,459
|
|
|
$
|
140,533
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
|
|
|
|
|
||||
Amortization of deferred sales commissions
|
|
5,999
|
|
|
9,274
|
|
||
Depreciation and other amortization
|
|
11,301
|
|
|
16,074
|
|
||
Share-based compensation expense
|
|
14,464
|
|
|
14,703
|
|
||
Gain on disposal of assets
|
|
(2,443
|
)
|
|
(663
|
)
|
||
Provision for deferred income taxes
|
|
13,470
|
|
|
14,003
|
|
||
Fair-value adjustments for contingent liabilities
|
|
900
|
|
|
0
|
|
||
Tax benefit from share-based compensation
|
|
128
|
|
|
1,536
|
|
||
Excess tax benefits from share-based compensation
|
|
(1,447
|
)
|
|
(2,702
|
)
|
||
Impairment of assets
|
|
0
|
|
|
6,956
|
|
||
Net purchases of trading securities
|
|
(7,823
|
)
|
|
(3,448
|
)
|
||
Deferred sales commissions paid
|
|
(6,765
|
)
|
|
(8,095
|
)
|
||
Contingent deferred sales charges received
|
|
1,191
|
|
|
1,761
|
|
||
Proceeds from sale of certain B-share-related future revenue
|
|
0
|
|
|
1,223
|
|
||
Other changes in assets and liabilities:
|
|
|
|
|
||||
Decrease (increase) in receivables, net
|
|
2,495
|
|
|
(885
|
)
|
||
Decrease in prepaid expenses and other assets
|
|
2,680
|
|
|
14,426
|
|
||
Decrease in accounts payable and accrued expenses
|
|
(16,962
|
)
|
|
(17,203
|
)
|
||
Increase in income taxes payable
|
|
1,569
|
|
|
1,079
|
|
||
Increase (decrease) in other liabilities
|
|
9,756
|
|
|
(17,581
|
)
|
||
Net cash provided by operating activities
|
|
144,972
|
|
|
170,991
|
|
||
Investing Activities
|
|
|
|
|
||||
Purchases of securities available for sale
|
|
(72,108
|
)
|
|
(58,202
|
)
|
||
Cash paid for business acquisitions
|
|
(47,975
|
)
|
|
(46,127
|
)
|
||
Cash paid for property and equipment
|
|
(6,820
|
)
|
|
(5,126
|
)
|
||
Cash paid for purchased loans
|
|
0
|
|
|
(44,343
|
)
|
||
Proceeds from disposal of property and equipment
|
|
0
|
|
|
3,298
|
|
||
Proceeds from redemptions of securities available for sale
|
|
26,795
|
|
|
45,402
|
|
||
Net cash used by investing activities
|
|
(100,108
|
)
|
|
(105,098
|
)
|
||
Financing Activities
|
|
|
|
|
||||
Dividends paid
|
|
(75,061
|
)
|
|
(203,951
|
)
|
||
Purchases of treasury stock
|
|
(19,867
|
)
|
|
(9,289
|
)
|
||
Distributions to noncontrolling interests in subsidiaries
|
|
(1,521
|
)
|
|
(9,670
|
)
|
||
Contributions from noncontrolling interests in subsidiaries
|
|
6,511
|
|
|
7,467
|
|
||
Proceeds from shareholders for share-based compensation
|
|
15,153
|
|
|
683
|
|
||
Excess tax benefits from share-based compensation
|
|
1,447
|
|
|
2,702
|
|
||
Proceeds from new borrowings – recourse
|
|
0
|
|
|
407,000
|
|
||
Proceeds from new borrowings – nonrecourse
|
|
0
|
|
|
271
|
|
||
Payments on debt – recourse
|
|
(31,875
|
)
|
|
(118,625
|
)
|
||
Payments on debt – nonrecourse
|
|
(3,775
|
)
|
|
(7,383
|
)
|
||
Other financing activities
|
|
(1,836
|
)
|
|
(2,866
|
)
|
||
Net cash (used) provided by financing activities
|
|
(110,824
|
)
|
|
66,339
|
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(65,960
|
)
|
|
132,232
|
|
||
Cash and cash equivalents, beginning of period
|
|
198,756
|
|
|
90,452
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
132,796
|
|
|
$
|
222,684
|
|
Notes to the Consolidated Financial Statements
|
||||
(Unaudited)
|
|
|
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
|
|
(pro forma)
Three Months Ended
|
|
|
(pro forma)
Nine Months Ended
|
|
||
(in millions, except per share data)
|
|
September 30, 2010
|
|
September 30, 2010
|
||||
Revenue
|
|
$
|
249.8
|
|
|
$
|
735.8
|
|
Net income attributable to Federated Investors, Inc.
|
|
$
|
45.3
|
|
|
$
|
140.8
|
|
|
|
|
|
|
||||
Earnings per share – Basic and Diluted attributable to Federated Investors, Inc.
|
|
$
|
0.44
|
|
|
$
|
1.35
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
|
|
September 30, 2011
|
|
December 31, 2010
|
||||||||||||||||||||
in millions
|
|
Unconsolidated
VIE assets
|
|
Unconsolidated
VIE Liabilities
|
|
Total
remaining
carrying value
of investment
and maximum
risk of loss
|
|
Unconsolidated
VIE assets
|
|
Unconsolidated
VIE Liabilities
|
|
Total
remaining
carrying value
of investment
and maximum
risk of loss
|
||||||||||||
Investment companies
1
|
|
$
|
277,285.8
|
|
|
$
|
—
|
|
|
$
|
270.8
|
|
|
$
|
275,365.1
|
|
|
$
|
—
|
|
|
$
|
297.0
|
|
Collateralized debt obligations
2
|
|
$
|
2.0
|
|
|
$
|
12.0
|
|
|
$
|
—
|
|
|
$
|
12.8
|
|
|
$
|
121.6
|
|
|
$
|
—
|
|
Equity investment
|
|
$
|
4.6
|
|
|
$
|
0.6
|
|
|
$
|
7.2
|
|
|
$
|
6.4
|
|
|
$
|
2.4
|
|
|
$
|
7.4
|
|
1
|
The unconsolidated VIE assets for the investment companies represent total net assets under management for the related investment companies. Of Federated’s
$270.8 million
invested in these entities at
September 30, 2011
,
$99.2 million
represents investments in money market funds included in Cash and cash equivalents, with the remaining
$171.6 million
included in Investments on the Consolidated Balance Sheets. Of Federated’s
$297.0 million
invested in these entities at
December 31, 2010
,
$191.2 million
represents investments in money market funds included in Cash and cash equivalents, with the remaining
$105.8 million
included in Investments on the Consolidated Balance Sheets.
|
2
|
The risk of loss does not include the potential loss associated with related deferred tax assets expiring unutilized.
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
|
|
September 30, 2011
|
|
December 31, 2010
|
||||||||||||||||||||||||||||
|
|
Fair Value Measurements Using
|
|
Fair Value Measurements Using
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
|
$
|
132,796
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
132,796
|
|
|
$
|
198,756
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
198,756
|
|
Available-for-sale equity securities
1
|
|
153,568
|
|
|
0
|
|
|
0
|
|
|
153,568
|
|
|
105,724
|
|
|
0
|
|
|
0
|
|
|
105,724
|
|
||||||||
Trading securities – equity
1
|
|
23,493
|
|
|
4,660
|
|
|
0
|
|
|
28,153
|
|
|
6,937
|
|
|
4,431
|
|
|
0
|
|
|
11,368
|
|
||||||||
Trading securities – debt
1
|
|
557
|
|
|
7,115
|
|
|
0
|
|
|
7,672
|
|
|
10,016
|
|
|
7,777
|
|
|
0
|
|
|
17,793
|
|
||||||||
Foreign currency forward contract
2
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
68
|
|
|
0
|
|
|
68
|
|
||||||||
Total financial assets
|
|
$
|
310,414
|
|
|
$
|
11,775
|
|
|
$
|
0
|
|
|
$
|
322,189
|
|
|
$
|
321,433
|
|
|
$
|
12,276
|
|
|
$
|
0
|
|
|
$
|
333,709
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swap
3
|
|
$
|
0
|
|
|
$
|
16,776
|
|
|
$
|
0
|
|
|
$
|
16,776
|
|
|
$
|
0
|
|
|
$
|
11,734
|
|
|
$
|
0
|
|
|
$
|
11,734
|
|
SunTrust Acquisition future consideration payments liability
|
|
0
|
|
|
0
|
|
|
18,358
|
|
|
18,358
|
|
|
0
|
|
|
0
|
|
|
20,058
|
|
|
20,058
|
|
||||||||
Foreign currency forward contract
4
|
|
0
|
|
|
181
|
|
|
0
|
|
|
181
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||||
Total financial liabilities
|
|
$
|
0
|
|
|
$
|
16,957
|
|
|
$
|
18,358
|
|
|
$
|
35,315
|
|
|
$
|
0
|
|
|
$
|
11,734
|
|
|
$
|
20,058
|
|
|
$
|
31,792
|
|
1
|
Amount included in Investments on the Consolidated Balance Sheets.
|
2
|
Amount included in Receivables – other on the Consolidated Balance Sheets. Pricing is determined by interpolating a value by utilizing the spot foreign exchange rate and forward points (based on the spot rate and currency interest rate differentials), which are all inputs that are observable in active markets.
|
3
|
Amount included in Other current liabilities on the Consolidated Balance Sheets. Pricing is determined based on a third-party, model-derived valuation in which all significant inputs are observable in active markets including the Eurodollar future rate and yields for three- and thirty-year Treasury securities. See
Note (10)
for more information regarding the swap.
|
4
|
Amount included in Accounts payable and accrued expenses on the Consolidated Balance Sheets. Pricing is determined by interpolating a value by utilizing the spot foreign exchange rate and forward points (based on the spot rate and currency interest rate differentials), which are all inputs that are observable in active markets.
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
(in thousands)
|
|
||
Balance at December 31, 2010
|
$
|
20,058
|
|
Adjustment to reflect final valuation
1
|
(2,600
|
)
|
|
Changes in fair value
2
|
900
|
|
|
Contingent consideration payments
|
0
|
|
|
Balance at September 30, 2011
|
$
|
18,358
|
|
1
|
As a result of finalizing the valuation relating to the SunTrust Acquisition this adjustment was required to revise the preliminary estimate of fair value.
|
2
|
Amounts included in Intangible asset related expense on the Consolidated Statements of Income.
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
|
|
September 30, 2011
|
|
December 31, 2010
|
||||||||||||||||||||||||||||
|
|
|
|
Gross Unrealized
|
|
Estimated
Market
|
|
|
|
Gross Unrealized
|
|
Estimated
Market
|
||||||||||||||||||||
(in thousands)
|
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Value
|
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Value
|
||||||||||||||||
Equity mutual funds
|
|
$
|
43,142
|
|
|
$
|
369
|
|
|
$
|
(3,573
|
)
|
|
$
|
39,938
|
|
|
$
|
41,879
|
|
|
$
|
5,200
|
|
|
$
|
(24
|
)
|
|
$
|
47,055
|
|
Fixed-income mutual funds
|
|
114,765
|
|
|
430
|
|
|
(1,565
|
)
|
|
113,630
|
|
|
58,143
|
|
|
662
|
|
|
(136
|
)
|
|
58,669
|
|
||||||||
Total fluctuating-value mutual funds
|
|
$
|
157,907
|
|
|
$
|
799
|
|
|
$
|
(5,138
|
)
|
|
$
|
153,568
|
|
|
$
|
100,022
|
|
|
$
|
5,862
|
|
|
$
|
(160
|
)
|
|
$
|
105,724
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Unrealized (loss) gain
|
|
|
|
|
|
|
|
|
||||||||
Trading securities
|
|
$
|
(1,963
|
)
|
|
$
|
2,201
|
|
|
$
|
(1,688
|
)
|
|
$
|
(438
|
)
|
Derivatives
2
|
|
(163
|
)
|
|
239
|
|
|
(270
|
)
|
|
363
|
|
||||
Realized gains
1
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
223
|
|
|
10
|
|
|
2,310
|
|
|
35
|
|
||||
Trading securities
|
|
92
|
|
|
797
|
|
|
704
|
|
|
1,986
|
|
||||
Derivatives
2
|
|
23
|
|
|
297
|
|
|
429
|
|
|
308
|
|
||||
Realized losses
1
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
||||
Trading securities
|
|
(214
|
)
|
|
(58
|
)
|
|
(529
|
)
|
|
(682
|
)
|
||||
Derivatives
2
|
|
(291
|
)
|
|
(60
|
)
|
|
(441
|
)
|
|
(735
|
)
|
||||
(Loss) gain on securities, net
3
|
|
$
|
(2,293
|
)
|
|
$
|
3,426
|
|
|
$
|
515
|
|
|
$
|
835
|
|
1
|
Realized gains and losses are computed on a specific-identification basis.
|
2
|
These items relate to the settlement of economic derivatives held by certain consolidated sponsored products.
|
|
|
Weighted-Average Interest Rates
|
|
September 30, 2011
|
|
December 31, 2010
|
||||||||
(dollars in thousands)
|
|
2011
1
|
|
2010
2
|
|
|||||||||
Term Loan
3
|
|
3.646
|
%
|
|
4.396
|
%
|
|
$
|
371,875
|
|
|
$
|
403,750
|
|
Less: Short-term debt – recourse
|
|
|
|
|
|
42,500
|
|
|
42,500
|
|
||||
Long-term debt – recourse
|
|
|
|
|
|
$
|
329,375
|
|
|
$
|
361,250
|
|
1
|
As of
September 30, 2011
. See additional information below regarding the interest rate fixed at
3.646%
in connection with an interest rate swap, which expires on April 1, 2015.
|
2
|
As of
December 31, 2010
.
|
3
|
The term loan borrowings under the Credit Agreement expire on June 10, 2016.
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Numerator – Basic and Diluted
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Federated Investors, Inc.
|
|
$
|
38,320
|
|
|
$
|
43,056
|
|
|
$
|
113,964
|
|
|
$
|
132,713
|
|
Less: Total income available to participating unvested restricted shareholders
1
|
|
(1,211
|
)
|
|
(1,251
|
)
|
|
(3,746
|
)
|
|
(5,766
|
)
|
||||
Total net income attributable to Federated Common Stock
2
|
|
$
|
37,109
|
|
|
$
|
41,805
|
|
|
$
|
110,218
|
|
|
$
|
126,947
|
|
Denominator
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average common shares outstanding
|
|
100,684
|
|
|
99,916
|
|
|
100,725
|
|
|
99,907
|
|
||||
Dilutive potential shares from stock options
|
|
0
|
|
|
38
|
|
|
31
|
|
|
84
|
|
||||
Diluted weighted-average common shares outstanding
|
|
100,684
|
|
|
99,954
|
|
|
100,756
|
|
|
99,991
|
|
||||
Earnings per Share
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Federated Common Stock – Basic and Diluted
2
|
|
$
|
0.37
|
|
|
$
|
0.42
|
|
|
$
|
1.09
|
|
|
$
|
1.27
|
|
1
|
Income available to participating restricted shareholders includes dividends paid to unvested restricted shareholders, net of forfeited dividends, and their proportionate share of undistributed earnings, if any.
|
2
|
Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share.
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
Notes to the Consolidated Financial Statements (continued)
|
||
(Unaudited)
|
|
|
Part I, Item 2. Management’s Discussion and Analysis
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||||||||||
(in millions)
|
|
2011
|
|
2010
|
|
Change
|
|
Percent
Change
|
|
2011
|
|
2010
|
|
Change
|
|
Percent
Change
|
||||||||||||||
Investment advisory fees
|
|
$
|
(57.2
|
)
|
|
$
|
(28.1
|
)
|
|
$
|
(29.1
|
)
|
|
104
|
%
|
|
$
|
(142.8
|
)
|
|
$
|
(101.6
|
)
|
|
$
|
(41.2
|
)
|
|
41
|
%
|
Other service fees
|
|
(31.7
|
)
|
|
(25.7
|
)
|
|
(6.0
|
)
|
|
23
|
|
|
(88.9
|
)
|
|
(80.0
|
)
|
|
(8.9
|
)
|
|
11
|
|
||||||
Total Revenue
|
|
(88.9
|
)
|
|
(53.8
|
)
|
|
(35.1
|
)
|
|
65
|
|
|
(231.7
|
)
|
|
(181.6
|
)
|
|
(50.1
|
)
|
|
28
|
|
||||||
Distribution expense
|
|
(63.2
|
)
|
|
(42.6
|
)
|
|
(20.6
|
)
|
|
48
|
|
|
(170.5
|
)
|
|
(138.9
|
)
|
|
(31.6
|
)
|
|
23
|
|
||||||
Operating income
|
|
(25.7
|
)
|
|
(11.2
|
)
|
|
(14.5
|
)
|
|
129
|
|
|
(61.2
|
)
|
|
(42.7
|
)
|
|
(18.5
|
)
|
|
43
|
|
||||||
Noncontrolling interest
|
|
(2.5
|
)
|
|
(0.2
|
)
|
|
(2.3
|
)
|
|
1,150
|
|
|
(5.5
|
)
|
|
(0.9
|
)
|
|
(4.6
|
)
|
|
511
|
|
||||||
Pre-tax impact
|
|
$
|
(23.2
|
)
|
|
$
|
(11.0
|
)
|
|
$
|
(12.2
|
)
|
|
111
|
%
|
|
$
|
(55.7
|
)
|
|
$
|
(41.8
|
)
|
|
$
|
(13.9
|
)
|
|
33
|
%
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
|
|
September 30,
|
|
Percent Change
|
|||||||
(in millions)
|
|
2011
|
|
2010
|
|
||||||
By Asset Class
|
|
|
|
|
|
|
|||||
Money market
|
|
$
|
271,653
|
|
|
$
|
260,899
|
|
|
4
|
%
|
Fixed-income
|
|
42,883
|
|
|
40,174
|
|
|
7
|
%
|
||
Equity
|
|
27,971
|
|
|
29,133
|
|
|
(4
|
)%
|
||
Liquidation portfolios
1
|
|
9,144
|
|
|
11,071
|
|
|
(17
|
)%
|
||
Total managed assets
|
|
$
|
351,651
|
|
|
$
|
341,277
|
|
|
3
|
%
|
By Product Type
|
|
|
|
|
|
|
|||||
Funds:
|
|
|
|
|
|
|
|||||
Money market
|
|
$
|
245,293
|
|
|
$
|
233,611
|
|
|
5
|
%
|
Fixed-income
|
|
35,620
|
|
|
32,211
|
|
|
11
|
%
|
||
Equity
|
|
20,140
|
|
|
21,325
|
|
|
(6
|
)%
|
||
Total mutual fund assets
|
|
$
|
301,053
|
|
|
$
|
287,147
|
|
|
5
|
%
|
Separate Accounts:
|
|
|
|
|
|
|
|||||
Money market
|
|
$
|
26,360
|
|
|
$
|
27,288
|
|
|
(3
|
)%
|
Fixed-income
|
|
7,263
|
|
|
7,963
|
|
|
(9
|
)%
|
||
Equity
|
|
7,831
|
|
|
7,808
|
|
|
0
|
%
|
||
Total separate account assets
|
|
$
|
41,454
|
|
|
$
|
43,059
|
|
|
(4
|
)%
|
Liquidation Portfolios
1
|
|
$
|
9,144
|
|
|
$
|
11,071
|
|
|
(17
|
)%
|
Total managed assets
|
|
$
|
351,651
|
|
|
$
|
341,277
|
|
|
3
|
%
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||
|
|
September 30,
|
|
Percent Change
|
|
September 30,
|
|
Percent Change
|
||||||||||||||
(in millions)
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
||||||||||||
By Asset Class
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market
|
|
$
|
266,756
|
|
|
$
|
260,098
|
|
|
3
|
%
|
|
$
|
270,236
|
|
|
$
|
270,276
|
|
|
0
|
%
|
Fixed-income
|
|
43,001
|
|
|
39,192
|
|
|
10
|
%
|
|
42,105
|
|
|
36,691
|
|
|
15
|
%
|
||||
Equity
|
|
29,699
|
|
|
28,033
|
|
|
6
|
%
|
|
30,758
|
|
|
28,769
|
|
|
7
|
%
|
||||
Liquidation portfolios
1
|
|
9,309
|
|
|
11,313
|
|
|
(18
|
)%
|
|
9,994
|
|
|
11,797
|
|
|
(15
|
)%
|
||||
Total average managed assets
|
|
$
|
348,765
|
|
|
$
|
338,636
|
|
|
3
|
%
|
|
$
|
353,093
|
|
|
$
|
347,533
|
|
|
2
|
%
|
By Product Type
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market
|
|
$
|
239,406
|
|
|
$
|
232,230
|
|
|
3
|
%
|
|
$
|
239,807
|
|
|
$
|
239,523
|
|
|
0
|
%
|
Fixed-income
|
|
35,478
|
|
|
31,491
|
|
|
13
|
%
|
|
33,759
|
|
|
30,362
|
|
|
11
|
%
|
||||
Equity
|
|
21,491
|
|
|
20,411
|
|
|
5
|
%
|
|
22,277
|
|
|
20,657
|
|
|
8
|
%
|
||||
Total average mutual fund assets
|
|
$
|
296,375
|
|
|
$
|
284,132
|
|
|
4
|
%
|
|
$
|
295,843
|
|
|
$
|
290,542
|
|
|
2
|
%
|
Separate Accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market
|
|
$
|
27,350
|
|
|
$
|
27,868
|
|
|
(2
|
)%
|
|
$
|
30,429
|
|
|
$
|
30,753
|
|
|
(1
|
)%
|
Fixed-income
|
|
7,523
|
|
|
7,701
|
|
|
(2
|
)%
|
|
8,346
|
|
|
6,329
|
|
|
32
|
%
|
||||
Equity
|
|
8,208
|
|
|
7,622
|
|
|
8
|
%
|
|
8,481
|
|
|
8,112
|
|
|
5
|
%
|
||||
Total average separate account assets
|
|
$
|
43,081
|
|
|
$
|
43,191
|
|
|
0
|
%
|
|
$
|
47,256
|
|
|
$
|
45,194
|
|
|
5
|
%
|
Liquidation Portfolios
1
|
|
$
|
9,309
|
|
|
$
|
11,313
|
|
|
(18
|
)%
|
|
$
|
9,994
|
|
|
$
|
11,797
|
|
|
(15
|
)%
|
Total average managed assets
|
|
$
|
348,765
|
|
|
$
|
338,636
|
|
|
3
|
%
|
|
$
|
353,093
|
|
|
$
|
347,533
|
|
|
2
|
%
|
1
|
Liquidation portfolios include portfolios of distressed fixed-income securities. Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period.
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Fixed-Income Funds
|
|
|
|
|
|
|
|
|
||||||||
Beginning assets
|
|
$
|
34,874
|
|
|
$
|
30,651
|
|
|
$
|
31,933
|
|
|
$
|
28,427
|
|
Sales
|
|
4,049
|
|
|
3,655
|
|
|
13,294
|
|
|
11,775
|
|
||||
Redemptions
|
|
(3,707
|
)
|
|
(2,829
|
)
|
|
(12,427
|
)
|
|
(9,393
|
)
|
||||
Net sales
|
|
342
|
|
|
826
|
|
|
867
|
|
|
2,382
|
|
||||
Net exchanges
|
|
29
|
|
|
20
|
|
|
1,835
|
|
|
51
|
|
||||
Acquisition-related
|
|
132
|
|
|
0
|
|
|
132
|
|
|
0
|
|
||||
Market gains and losses/reinvestments
1
|
|
243
|
|
|
714
|
|
|
853
|
|
|
1,351
|
|
||||
Ending assets
|
|
$
|
35,620
|
|
|
$
|
32,211
|
|
|
$
|
35,620
|
|
|
$
|
32,211
|
|
Equity Funds
|
|
|
|
|
|
|
|
|
||||||||
Beginning assets
|
|
$
|
22,678
|
|
|
$
|
19,344
|
|
|
$
|
22,626
|
|
|
$
|
20,960
|
|
Sales
|
|
2,434
|
|
|
1,639
|
|
|
5,448
|
|
|
4,532
|
|
||||
Redemptions
|
|
(1,966
|
)
|
|
(1,582
|
)
|
|
(5,690
|
)
|
|
(5,104
|
)
|
||||
Net sales (redemptions)
|
|
468
|
|
|
57
|
|
|
(242
|
)
|
|
(572
|
)
|
||||
Net exchanges
|
|
(40
|
)
|
|
(31
|
)
|
|
(44
|
)
|
|
(54
|
)
|
||||
Acquisition-related
|
|
463
|
|
|
0
|
|
|
463
|
|
|
0
|
|
||||
Market gains and losses/reinvestments
1
|
|
(3,429
|
)
|
|
1,955
|
|
|
(2,663
|
)
|
|
991
|
|
||||
Ending assets
|
|
$
|
20,140
|
|
|
$
|
21,325
|
|
|
$
|
20,140
|
|
|
$
|
21,325
|
|
1
|
Reflects approximate changes in the market value of the securities held by the funds, and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
Fixed-Income Separate Accounts
|
|
|
|
|
|
|
|
|
||||||||
Beginning assets
|
|
$
|
7,544
|
|
|
$
|
7,361
|
|
|
$
|
8,772
|
|
|
$
|
5,360
|
|
Sales
2
|
|
198
|
|
|
530
|
|
|
1,283
|
|
|
3,289
|
|
||||
Redemptions
2
|
|
(469
|
)
|
|
(244
|
)
|
|
(1,248
|
)
|
|
(1,078
|
)
|
||||
Net (redemptions) sales
2
|
|
(271
|
)
|
|
286
|
|
|
35
|
|
|
2,211
|
|
||||
Net exchanges
|
|
0
|
|
|
0
|
|
|
(1,807
|
)
|
|
0
|
|
||||
Market gains and losses/reinvestments
3
|
|
(10
|
)
|
|
316
|
|
|
263
|
|
|
392
|
|
||||
Ending assets
|
|
$
|
7,263
|
|
|
$
|
7,963
|
|
|
$
|
7,263
|
|
|
$
|
7,963
|
|
Equity Separate Accounts
|
|
|
|
|
|
|
|
|
||||||||
Beginning assets
|
|
$
|
8,702
|
|
|
$
|
7,470
|
|
|
$
|
8,176
|
|
|
$
|
8,713
|
|
Sales
2
|
|
723
|
|
|
522
|
|
|
1,988
|
|
|
1,225
|
|
||||
Redemptions
2
|
|
(631
|
)
|
|
(975
|
)
|
|
(1,981
|
)
|
|
(2,389
|
)
|
||||
Net sales (redemptions)
2
|
|
92
|
|
|
(453
|
)
|
|
7
|
|
|
(1,164
|
)
|
||||
Net exchanges
|
|
7
|
|
|
9
|
|
|
28
|
|
|
31
|
|
||||
Market gains and losses/reinvestments
3
|
|
(970
|
)
|
|
782
|
|
|
(380
|
)
|
|
228
|
|
||||
Ending assets
|
|
$
|
7,831
|
|
|
$
|
7,808
|
|
|
$
|
7,831
|
|
|
$
|
7,808
|
|
Liquidation Portfolios
|
|
|
|
|
|
|
|
|
||||||||
Beginning assets
|
|
$
|
9,964
|
|
|
$
|
11,491
|
|
|
$
|
10,708
|
|
|
$
|
12,596
|
|
Sales
2
|
|
0
|
|
|
3
|
|
|
2
|
|
|
10
|
|
||||
Redemptions
2
|
|
(820
|
)
|
|
(423
|
)
|
|
(1,565
|
)
|
|
(1,535
|
)
|
||||
Net redemptions
2
|
|
(820
|
)
|
|
(420
|
)
|
|
(1,563
|
)
|
|
(1,525
|
)
|
||||
Market gains and losses/reinvestments
3
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
||||
Ending assets
|
|
$
|
9,144
|
|
|
$
|
11,071
|
|
|
$
|
9,144
|
|
|
$
|
11,071
|
|
2
|
For certain accounts, Sales, Redemptions or Net sales/redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses/reinvestments.
|
3
|
Reflects approximate changes in the market value of the securities held in the portfolios, and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
|
|
Percent of Total Average Managed Assets
|
|
Percent of Total Revenue
|
||||||||
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
By Asset Class
|
|
|
|
|
|
|
|
|
||||
Money market assets
|
|
76
|
%
|
|
78
|
%
|
|
46
|
%
|
|
50
|
%
|
Fixed-income assets
|
|
12
|
%
|
|
11
|
%
|
|
20
|
%
|
|
18
|
%
|
Equity assets
|
|
9
|
%
|
|
8
|
%
|
|
33
|
%
|
|
31
|
%
|
Liquidation portfolios
|
|
3
|
%
|
|
3
|
%
|
|
—
|
|
|
—
|
|
Other activities
|
|
N/A
|
|
|
N/A
|
|
|
1
|
%
|
|
1
|
%
|
By Product Type
|
|
|
|
|
|
|
|
|
||||
Funds:
|
|
|
|
|
|
|
|
|
||||
Money market assets
|
|
68
|
%
|
|
69
|
%
|
|
45
|
%
|
|
49
|
%
|
Fixed-income assets
|
|
10
|
%
|
|
9
|
%
|
|
18
|
%
|
|
17
|
%
|
Equity assets
|
|
6
|
%
|
|
6
|
%
|
|
29
|
%
|
|
27
|
%
|
Separate Accounts:
|
|
|
|
|
|
|
|
|
||||
Money market assets
|
|
8
|
%
|
|
9
|
%
|
|
1
|
%
|
|
1
|
%
|
Fixed-income assets
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
1
|
%
|
Equity assets
|
|
3
|
%
|
|
2
|
%
|
|
4
|
%
|
|
4
|
%
|
Liquidation Portfolios
|
|
3
|
%
|
|
3
|
%
|
|
—
|
|
|
—
|
|
Other activities
|
|
N/A
|
|
|
N/A
|
|
|
1
|
%
|
|
1
|
%
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||||||||||
(in millions)
|
|
2011
|
|
2010
|
|
Change
|
|
Percent
Change
|
|
2011
|
|
2010
|
|
Change
|
|
Percent
Change
|
||||||||||||||
Revenue from managed assets
|
|
$
|
212.0
|
|
|
$
|
240.3
|
|
|
$
|
(28.3
|
)
|
|
(12
|
)%
|
|
$
|
672.7
|
|
|
$
|
700.8
|
|
|
$
|
(28.1
|
)
|
|
(4
|
)%
|
Revenue from sources other than managed assets
|
|
2.0
|
|
|
1.9
|
|
|
0.1
|
|
|
5
|
%
|
|
6.0
|
|
|
5.8
|
|
|
0.2
|
|
|
3
|
%
|
||||||
Total revenue
|
|
$
|
214.0
|
|
|
$
|
242.2
|
|
|
$
|
(28.2
|
)
|
|
(12
|
)%
|
|
$
|
678.7
|
|
|
$
|
706.6
|
|
|
$
|
(27.9
|
)
|
|
(4
|
)%
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||||||||||
(in millions)
|
|
2011
|
|
2010
|
|
Change
|
|
Percent
Change
|
|
2011
|
|
2010
|
|
Change
|
|
Percent
Change
|
||||||||||||||
Distribution
|
|
$
|
54.4
|
|
|
$
|
68.8
|
|
|
$
|
(14.4
|
)
|
|
(21
|
)%
|
|
$
|
176.9
|
|
|
$
|
190.1
|
|
|
$
|
(13.2
|
)
|
|
(7
|
)%
|
Professional service fees
|
|
9.4
|
|
|
9.4
|
|
|
0.0
|
|
|
0
|
%
|
|
44.2
|
|
|
9.6
|
|
|
34.6
|
|
|
360
|
%
|
||||||
Intangible asset related
|
|
1.3
|
|
|
3.4
|
|
|
(2.1
|
)
|
|
(62
|
)%
|
|
6.7
|
|
|
16.5
|
|
|
(9.8
|
)
|
|
(59
|
)%
|
||||||
All other
|
|
81.9
|
|
|
85.5
|
|
|
(3.6
|
)
|
|
(4
|
)%
|
|
255.3
|
|
|
259.7
|
|
|
(4.4
|
)
|
|
(2
|
)%
|
||||||
Total operating expenses
|
|
$
|
147.0
|
|
|
$
|
167.1
|
|
|
$
|
(20.1
|
)
|
|
(12
|
)%
|
|
$
|
483.1
|
|
|
$
|
475.9
|
|
|
$
|
7.2
|
|
|
2
|
%
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
Management's Discussion and Analysis (continued)
|
||
of Financial Condition and Results of Operations (Unaudited)
|
|
(a)
|
Federated carried out an evaluation, under the supervision and with the participation of management, including Federated’s President and Chief Executive Officer and Chief Financial Officer, of the effectiveness of Federated’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of
September 30, 2011
. Based upon that evaluation, the President and Chief Executive Officer and the Chief Financial Officer concluded that Federated’s disclosure controls and procedures were effective at
September 30, 2011
.
|
(b)
|
There has been no change in Federated’s internal control over financial reporting that occurred during the quarter ended
September 30, 2011
that has materially affected, or is reasonably likely to materially affect, Federated’s internal control over financial reporting.
|
|
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
1
|
|
Maximum Number of Shares that
May Yet Be Purchased Under the
Plans or Programs
1
|
|||||
July
2
|
|
9,992
|
|
|
$
|
1.35
|
|
|
0
|
|
|
3,211,300
|
|
August
2
|
|
508,300
|
|
|
17.17
|
|
|
500,000
|
|
|
2,711,300
|
|
|
September
2
|
|
11,841
|
|
|
4.04
|
|
|
1,466
|
|
|
2,709,834
|
|
|
Total
|
|
530,133
|
|
|
$
|
16.58
|
|
|
501,466
|
|
|
2,709,834
|
|
1
|
Federated’s share repurchase program was authorized in August 2008 by the board of directors and permits the purchase of up to
5.0 million
shares of Federated Class B common stock with no stated expiration date.
|
2
|
In July, August and September
2011
, 9,992, 8,300 and 10,375 shares, respectively, of restricted stock with weighted-average prices of $1.35, $3.00 and $2.27 per share, respectively, were repurchased in connection with employee separations.
|
|
|
|
|
|
|
Federated Investors, Inc.
|
|
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date
|
|
October 31, 2011
|
|
By:
|
|
/s/ J. Christopher Donahue
|
|
|
|
|
|
|
J. Christopher Donahue
|
|
|
|
|
|
|
President and
|
|
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
Date
|
|
October 31, 2011
|
|
By:
|
|
/s/ Thomas R. Donahue
|
|
|
|
|
|
|
Thomas R. Donahue
|
|
|
|
|
|
|
Chief Financial Officer
|
By:
|
NEW LIBERTY CENTER PARTNERSHIP,
a Pennsylvania limited liability company
|
Tenant Refurbishment
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Interest
|
5
|
%
|
|
|
|
|
|
|
||||||
Amortization
|
10 Years
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|||||||
|
Total
|
Int
|
Principal
|
Balance
|
Accumulating Principal
|
Example Draw
|
Example Unamortized Balance
|
|||||||
Year 1
|
|
|
|
5,284,088
|
|
|
|
|
||||||
1/1/2012
|
56,046
|
|
22,017
|
|
34,029
|
|
5,250,059
|
|
34,029
|
|
|
|
||
2/1/2012
|
56,046
|
|
21,875
|
|
34,171
|
|
5,215,888
|
|
68,200
|
|
|
|
||
3/1/2012
|
56,046
|
|
21,733
|
|
34,313
|
|
5,181,575
|
|
102,513
|
|
|
|
||
4/1/2012
|
56,046
|
|
21,590
|
|
34,456
|
|
5,147,119
|
|
136,969
|
|
|
|
||
5/1/2012
|
56,046
|
|
21,446
|
|
34,600
|
|
5,112,520
|
|
171,568
|
|
|
|
||
6/1/2012
|
56,046
|
|
21,302
|
|
34,744
|
|
5,077,776
|
|
206,312
|
|
|
|
||
7/1/2012
|
56,046
|
|
21,157
|
|
34,889
|
|
5,042,887
|
|
241,201
|
|
|
|
||
8/1/2012
|
56,046
|
|
21,012
|
|
35,034
|
|
5,007,853
|
|
276,235
|
|
|
|
||
9/1/2012
|
56,046
|
|
20,866
|
|
35,180
|
|
4,972,673
|
|
311,415
|
|
|
|
||
10/1/2012
|
56,046
|
|
20,719
|
|
35,326
|
|
4,937,347
|
|
346,741
|
|
|
|
||
11/1/2012
|
56,046
|
|
20,572
|
|
35,474
|
|
4,901,873
|
|
382,215
|
|
|
|
||
12/1/2012
|
56,046
|
|
20,424
|
|
35,621
|
|
4,866,252
|
|
417,836
|
|
|
|
||
|
672,551
|
|
254,715
|
|
417,836
|
|
|
|
|
|
||||
Year 2
|
|
|
|
|
|
|
|
|||||||
1/1/2013
|
56,046
|
|
20,276
|
|
35,770
|
|
4,830,482
|
|
453,606
|
|
3,500,000
|
|
|
|
2/1/2013
|
56,046
|
|
20,127
|
|
35,919
|
|
4,794,563
|
|
489,525
|
|
|
|
||
3/1/2013
|
56,046
|
|
19,977
|
|
36,069
|
|
4,758,494
|
|
525,594
|
|
|
|
||
4/1/2013
|
56,046
|
|
19,827
|
|
36,219
|
|
4,722,276
|
|
561,812
|
|
|
|
||
5/1/2013
|
56,046
|
|
19,676
|
|
36,370
|
|
4,685,906
|
|
598,182
|
|
|
|
||
6/1/2013
|
56,046
|
|
19,525
|
|
36,521
|
|
4,649,384
|
|
634,704
|
|
|
|
||
7/1/2013
|
56,046
|
|
19,372
|
|
36,674
|
|
4,612,711
|
|
671,377
|
|
|
|
||
8/1/2013
|
56,046
|
|
19,220
|
|
36,826
|
|
4,575,885
|
|
708,203
|
|
|
|
||
9/1/2013
|
56,046
|
|
19,066
|
|
36,980
|
|
4,538,905
|
|
745,183
|
|
|
|
||
10/1/2013
|
56,046
|
|
18,912
|
|
37,134
|
|
4,501,771
|
|
782,317
|
|
|
|
||
11/1/2013
|
56,046
|
|
18,757
|
|
37,289
|
|
4,464,482
|
|
819,606
|
|
|
|
||
12/1/2013
|
56,046
|
|
18,602
|
|
37,444
|
|
4,427,038
|
|
857,050
|
|
|
|
||
|
672,551
|
|
233,338
|
|
439,213
|
|
|
|
|
|
||||
Year 3
|
|
|
|
|
|
|
|
|||||||
1/1/2014
|
56,046
|
|
18,446
|
|
37,600
|
|
4,389,438
|
|
894,650
|
|
|
|
||
2/1/2014
|
56,046
|
|
18,289
|
|
37,757
|
|
4,351,682
|
|
932,406
|
|
|
|
||
3/1/2014
|
56,046
|
|
18,132
|
|
37,914
|
|
4,313,768
|
|
970,320
|
|
|
|
||
4/1/2014
|
56,046
|
|
17,974
|
|
38,072
|
|
4,275,696
|
|
1,008,392
|
|
|
|
||
5/1/2014
|
56,046
|
|
17,815
|
|
38,231
|
|
4,237,465
|
|
1,046,623
|
|
|
|
||
6/1/2014
|
56,046
|
|
17,656
|
|
38,390
|
|
4,199,076
|
|
1,085,012
|
|
|
|
7/1/2014
|
56,046
|
|
17,496
|
|
38,550
|
|
4,160,526
|
|
1,123,562
|
|
|
|
||
8/1/2014
|
56,046
|
|
17,336
|
|
38,710
|
|
4,121,815
|
|
1,162,273
|
|
|
|
||
9/1/2014
|
56,046
|
|
17,174
|
|
38,872
|
|
4,082,944
|
|
1,201,144
|
|
|
|
||
10/1/2014
|
56,046
|
|
17,012
|
|
39,034
|
|
4,043,910
|
|
1,240,178
|
|
|
|
||
11/1/2014
|
56,046
|
|
16,850
|
|
39,196
|
|
4,004,714
|
|
1,279,374
|
|
|
|
||
12/1/2014
|
56,046
|
|
16,686
|
|
39,360
|
|
3,965,354
|
|
1,318,734
|
|
|
|
||
|
672,551
|
|
210,867
|
|
461,684
|
|
|
|
|
|
||||
Year 4
|
|
|
|
|
|
|
|
|||||||
1/1/2015
|
56,046
|
|
16,522
|
|
39,524
|
|
3,925,830
|
|
1,358,258
|
|
1,000,000
|
|
|
|
2/1/2015
|
56,046
|
|
16,358
|
|
39,688
|
|
3,886,142
|
|
1,397,946
|
|
|
|
||
3/1/2015
|
56,046
|
|
16,192
|
|
39,854
|
|
3,846,288
|
|
1,437,800
|
|
|
|
||
4/1/2015
|
56,046
|
|
16,026
|
|
40,020
|
|
3,806,269
|
|
1,477,819
|
|
|
|
||
5/1/2015
|
56,046
|
|
15,859
|
|
40,186
|
|
3,766,082
|
|
1,518,006
|
|
|
|
||
6/1/2015
|
56,046
|
|
15,692
|
|
40,354
|
|
3,725,728
|
|
1,558,360
|
|
|
|
||
7/1/2015
|
56,046
|
|
15,524
|
|
40,522
|
|
3,685,206
|
|
1,598,882
|
|
|
|
||
8/1/2015
|
56,046
|
|
15,355
|
|
40,691
|
|
3,644,515
|
|
1,639,573
|
|
|
|
||
9/1/2015
|
56,046
|
|
15,185
|
|
40,860
|
|
3,603,655
|
|
1,680,433
|
|
|
|
||
10/1/2015
|
56,046
|
|
15,015
|
|
41,031
|
|
3,562,624
|
|
1,721,464
|
|
|
|
||
11/1/2015
|
56,046
|
|
14,844
|
|
41,202
|
|
3,521,422
|
|
1,762,666
|
|
|
|
||
12/1/2015
|
56,046
|
|
14,673
|
|
41,373
|
|
3,480,049
|
|
1,804,039
|
|
|
|
||
|
672,551
|
|
187,246
|
|
485,305
|
|
|
|
|
|
||||
Year 5
|
|
|
|
|
|
|
|
|||||||
1/1/2016
|
56,046
|
|
14,500
|
|
41,546
|
|
3,438,503
|
|
1,845,585
|
|
784,088
|
|
|
|
2/1/2016
|
56,046
|
|
14,327
|
|
41,719
|
|
3,396,784
|
|
1,887,304
|
|
|
|
||
3/1/2016
|
56,046
|
|
14,153
|
|
41,893
|
|
3,354,892
|
|
1,929,196
|
|
|
|
||
4/1/2016
|
56,046
|
|
13,979
|
|
42,067
|
|
3,312,824
|
|
1,971,264
|
|
|
|
||
5/1/2016
|
56,046
|
|
13,803
|
|
42,243
|
|
3,270,582
|
|
2,013,506
|
|
|
|
||
6/1/2016
|
56,046
|
|
13,627
|
|
42,419
|
|
3,228,163
|
|
2,055,925
|
|
|
|
||
7/1/2016
|
56,046
|
|
13,451
|
|
42,595
|
|
3,185,568
|
|
2,098,520
|
|
|
|
||
8/1/2016
|
56,046
|
|
13,273
|
|
42,773
|
|
3,142,795
|
|
2,141,293
|
|
|
|
||
9/1/2016
|
56,046
|
|
13,095
|
|
42,951
|
|
3,099,844
|
|
2,184,244
|
|
|
|
||
10/1/2016
|
56,046
|
|
12,916
|
|
43,130
|
|
3,056,714
|
|
2,227,374
|
|
|
|
||
11/1/2016
|
56,046
|
|
12,736
|
|
43,310
|
|
3,013,405
|
|
2,270,683
|
|
|
|
||
12/1/2016
|
56,046
|
|
12,556
|
|
43,490
|
|
2,969,915
|
|
2,314,173
|
|
|
|
||
|
672,551
|
|
162,417
|
|
510,134
|
|
|
|
|
|
||||
Year 6
|
|
|
|
|
|
|
|
|||||||
1/1/2017
|
56,046
|
|
12,375
|
|
43,671
|
|
2,926,243
|
|
2,357,845
|
|
5,284,088
|
|
2,926,243
|
|
2/1/2017
|
56,046
|
|
12,193
|
|
43,853
|
|
2,882,390
|
|
2,401,698
|
|
|
|
||
3/1/2017
|
56,046
|
|
12,010
|
|
44,036
|
|
2,838,354
|
|
2,445,734
|
|
|
|
||
4/1/2017
|
56,046
|
|
11,826
|
|
44,219
|
|
2,794,135
|
|
2,489,953
|
|
|
|
||
5/1/2017
|
56,046
|
|
11,642
|
|
44,404
|
|
2,749,731
|
|
2,534,357
|
|
|
|
||
6/1/2017
|
56,046
|
|
11,457
|
|
44,589
|
|
2,705,142
|
|
2,578,946
|
|
|
|
||
7/1/2017
|
56,046
|
|
11,271
|
|
44,775
|
|
2,660,368
|
|
2,623,720
|
|
|
|
||
8/1/2017
|
56,046
|
|
11,085
|
|
44,961
|
|
2,615,407
|
|
2,668,681
|
|
|
|
||
9/1/2017
|
56,046
|
|
10,898
|
|
45,148
|
|
2,570,258
|
|
2,713,830
|
|
|
|
||
10/1/2017
|
56,046
|
|
10,709
|
|
45,337
|
|
2,524,922
|
|
2,759,166
|
|
|
|
||
11/1/2017
|
56,046
|
|
10,521
|
|
45,525
|
|
2,479,396
|
|
2,804,692
|
|
|
|
12/1/2017
|
56,046
|
|
10,331
|
|
45,715
|
|
2,433,681
|
|
2,850,407
|
|
|
|
||
|
672,551
|
|
136,318
|
|
536,234
|
|
|
|
|
|
||||
Year 7
|
|
|
|
|
|
|
|
|||||||
1/1/2018
|
56,046
|
|
10,140
|
|
45,906
|
|
2,387,775
|
|
2,896,313
|
|
|
|
||
2/1/2018
|
56,046
|
|
9,949
|
|
46,097
|
|
2,341,679
|
|
2,942,409
|
|
|
|
||
3/1/2018
|
56,046
|
|
9,757
|
|
46,289
|
|
2,295,390
|
|
2,988,698
|
|
|
|
||
4/1/2018
|
56,046
|
|
9,564
|
|
46,482
|
|
2,248,908
|
|
3,035,180
|
|
|
|
||
5/1/2018
|
56,046
|
|
9,370
|
|
46,676
|
|
2,202,232
|
|
3,081,856
|
|
|
|
||
6/1/2018
|
56,046
|
|
9,176
|
|
46,870
|
|
2,155,362
|
|
3,128,726
|
|
|
|
||
7/1/2018
|
56,046
|
|
8,981
|
|
47,065
|
|
2,108,297
|
|
3,175,791
|
|
|
|
||
8/1/2018
|
56,046
|
|
8,785
|
|
47,261
|
|
2,061,036
|
|
3,223,052
|
|
|
|
||
9/1/2018
|
56,046
|
|
8,588
|
|
47,458
|
|
2,013,577
|
|
3,270,511
|
|
|
|
||
10/1/2018
|
56,046
|
|
8,390
|
|
47,656
|
|
1,965,921
|
|
3,318,167
|
|
|
|
||
11/1/2018
|
56,046
|
|
8,191
|
|
47,855
|
|
1,918,067
|
|
3,366,021
|
|
|
|
||
12/1/2018
|
56,046
|
|
7,992
|
|
48,054
|
|
1,870,013
|
|
3,414,075
|
|
|
|
||
|
672,551
|
|
108,883
|
|
563,668
|
|
|
|
|
|
||||
Year 8
|
|
|
|
|
|
|
|
|||||||
1/1/2019
|
56,046
|
|
7,792
|
|
48,254
|
|
1,821,758
|
|
3,462,330
|
|
|
|
||
2/1/2019
|
56,046
|
|
7,591
|
|
48,455
|
|
1,773,303
|
|
3,510,785
|
|
|
|
||
3/1/2019
|
56,046
|
|
7,389
|
|
48,657
|
|
1,724,646
|
|
3,559,442
|
|
|
|
||
4/1/2019
|
56,046
|
|
7,186
|
|
48,860
|
|
1,675,786
|
|
3,608,302
|
|
|
|
||
5/1/2019
|
56,046
|
|
6,982
|
|
49,064
|
|
1,626,723
|
|
3,657,365
|
|
|
|
||
6/1/2019
|
56,046
|
|
6,778
|
|
49,268
|
|
1,577,455
|
|
3,706,633
|
|
|
|
||
7/1/2019
|
56,046
|
|
6,573
|
|
49,473
|
|
1,527,981
|
|
3,756,107
|
|
|
|
||
8/1/2019
|
56,046
|
|
6,367
|
|
49,679
|
|
1,478,302
|
|
3,805,786
|
|
|
|
||
9/1/2019
|
56,046
|
|
6,160
|
|
49,886
|
|
1,428,416
|
|
3,855,672
|
|
|
|
||
10/1/2019
|
56,046
|
|
5,952
|
|
50,094
|
|
1,378,321
|
|
3,905,767
|
|
|
|
||
11/1/2019
|
56,046
|
|
5,743
|
|
50,303
|
|
1,328,018
|
|
3,956,070
|
|
|
|
||
12/1/2019
|
56,046
|
|
5,533
|
|
50,513
|
|
1,277,506
|
|
4,006,582
|
|
|
|
||
|
672,551
|
|
80,045
|
|
592,507
|
|
|
|
|
|
||||
Year 9
|
|
|
|
|
|
|
|
|||||||
1/1/2020
|
56,046
|
|
5,323
|
|
50,723
|
|
1,226,783
|
|
4,057,305
|
|
|
|
||
1/1/2020
|
56,046
|
|
5,112
|
|
50,934
|
|
1,175,849
|
|
4,108,239
|
|
|
|
||
1/1/2020
|
56,046
|
|
4,899
|
|
51,147
|
|
1,124,702
|
|
4,159,386
|
|
|
|
||
1/1/2020
|
56,046
|
|
4,686
|
|
51,360
|
|
1,073,342
|
|
4,210,746
|
|
|
|
||
1/1/2020
|
56,046
|
|
4,472
|
|
51,574
|
|
1,021,769
|
|
4,262,319
|
|
|
|
||
1/1/2020
|
56,046
|
|
4,257
|
|
51,789
|
|
969,980
|
|
4,314,108
|
|
|
|
||
1/1/2020
|
56,046
|
|
4,042
|
|
52,004
|
|
917,976
|
|
4,366,112
|
|
|
|
||
1/1/2020
|
56,046
|
|
3,825
|
|
52,221
|
|
865,755
|
|
4,418,333
|
|
|
|
||
1/1/2020
|
56,046
|
|
3,607
|
|
52,439
|
|
813,316
|
|
4,470,772
|
|
|
|
||
1/1/2020
|
56,046
|
|
3,389
|
|
52,657
|
|
760,659
|
|
4,523,429
|
|
|
|
||
1/1/2020
|
56,046
|
|
3,169
|
|
52,877
|
|
707,782
|
|
4,576,306
|
|
|
|
||
1/1/2020
|
56,046
|
|
2,949
|
|
53,097
|
|
654,685
|
|
4,629,403
|
|
|
|
||
|
672,551
|
|
49,731
|
|
622,820
|
|
|
|
|
|
||||
Year 10
|
|
|
|
|
|
|
|
|||||||
1/1/2021
|
56,046
|
|
2,728
|
|
53,318
|
|
601,367
|
|
4,682,721
|
|
|
|
||
2/1/2021
|
56,046
|
|
2,506
|
|
53,540
|
|
547,827
|
|
4,736,261
|
|
|
|
3/1/2021
|
56,046
|
|
2,283
|
|
53,763
|
|
494,064
|
|
4,790,024
|
|
|
|
||
4/1/2021
|
56,046
|
|
2,059
|
|
53,987
|
|
440,076
|
|
4,844,012
|
|
|
|
||
5/1/2021
|
56,046
|
|
1,834
|
|
54,212
|
|
385,864
|
|
4,898,224
|
|
|
|
||
6/1/2021
|
56,046
|
|
1,608
|
|
54,438
|
|
331,426
|
|
4,952,662
|
|
|
|
||
7/1/2021
|
56,046
|
|
1,381
|
|
54,665
|
|
276,761
|
|
5,007,327
|
|
|
|
||
8/1/2021
|
56,046
|
|
1,153
|
|
54,893
|
|
221,868
|
|
5,062,220
|
|
|
|
||
9/1/2021
|
56,046
|
|
924
|
|
55,121
|
|
166,747
|
|
5,117,341
|
|
|
|
||
10/1/2021
|
56,046
|
|
695
|
|
55,351
|
|
111,395
|
|
5,172,693
|
|
|
|
||
11/1/2021
|
56,046
|
|
464
|
|
55,582
|
|
55,814
|
|
5,228,274
|
|
|
|
||
12/1/2021
|
56,046
|
|
233
|
|
55,813
|
|
—
|
|
5,284,088
|
|
|
|
||
|
672,551
|
|
17,866
|
|
654,685
|
|
|
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Federated Investors, Inc.;
|
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 officers 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 officers 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 the 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.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Federated Investors, Inc.;
|
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 officers 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 officers 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 the 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.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|