Maryland
|
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52-2264646
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State of incorporation
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IRS Employer Identification No.
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Common stock, $.20 par value per share
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TROW
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The NASDAQ Stock Market LLC
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(Title of class)
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(Ticker symbol)
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(Name of exchange on which registered)
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer (do not check if smaller reporting company)
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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PAGE
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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ITEM.
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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ITEM 15.
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Item 1.
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Business.
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•
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Maintain our position as a premier active asset manager, delivering durable value to clients.
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•
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Build T. Rowe Price into a more globally diversified asset manager.
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•
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Extend and leverage our retirement expertise globally while becoming an ever more integrated investment solutions provider.
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•
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Embed best practices for sustainability and environmental, social and corporate governance throughout the company.
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•
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Maintain strong processes and controls, which is increasingly important with growing business complexity and regulation.
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•
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Remain a destination of choice for top talent, with a culture of empowerment, accountability and collaboration.
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•
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Deliver attractive financial results and balance sheet strength for our stockholders over the long term.
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(in billions)
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2019
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2018
|
||||
Assets under management by vehicle
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||||
U.S. mutual funds
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$
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682.7
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$
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564.5
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Subadvised and separate accounts and other investment products:
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||||
Subadvised and separately managed accounts
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313.8
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250.0
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||
T. Rowe Price collective investment trusts
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158.7
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106.0
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T. Rowe Price stable value and variable annuity products
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21.4
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20.0
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T. Rowe Price SICAVs and other funds regulated outside the U.S.
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30.2
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21.8
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Total subadvised and separate accounts and other investment products
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524.1
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|
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397.8
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||
Total assets under management
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$
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1,206.8
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$
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962.3
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|
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||||
Assets under management by asset class
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||||
Equity
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$
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698.9
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$
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539.9
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Fixed income, including money market
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147.9
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136.1
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Multi-Asset(1)
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360.0
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286.3
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||
Total assets under management
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$
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1,206.8
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$
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962.3
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||||
Assets under management by distribution channel
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||||
Global financial intermediaries(2)
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$
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623.0
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$
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484.0
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Global institutions(2)(3)
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265.4
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211.4
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Individual U.S. investors on a direct basis
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190.7
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159.3
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U.S. retirement plan sponsors - full service recordkeeping
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127.7
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107.6
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Total assets under management
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$
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1,206.8
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$
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962.3
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||||
Assets under management by account type
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||||
Defined contribution retirement assets:
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|
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||||
Defined contribution - investment only
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$
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510.6
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$
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401.8
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Defined contribution - full-service recordkeeping
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121.0
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101.8
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||
Total defined contribution retirement assets
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631.6
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503.6
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Deferred annuity and direct retail retirement assets
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186.0
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149.9
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||
Total defined contribution, deferred annuity, and direct retail retirement assets
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817.6
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653.5
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Other
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389.2
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|
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308.8
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||
Total assets under management
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$
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1,206.8
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$
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962.3
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Americas financial intermediaries
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EMEA & APAC financial intermediaries
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Individual U.S. investors on a direct basis
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U.S. retirement plan sponsors - full service recordkeeping
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Global institutions
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U.S. Mutual Funds
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SICAVs(1) / FCPs(2)
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U.S. Mutual Funds
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U.S. Mutual Funds
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U.S. Mutual Funds
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Collective Investment Trusts
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Australian Unit Trusts ("AUTs")
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Separate Accounts
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Collective Investment Trusts
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Collective Investment Trusts
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Subadvised Accounts
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OEICs(3)
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College Savings Plans
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Separate Accounts
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SICAVs(1) / FCPs(2)
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Managed Accounts / Model Delivery
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Cayman Funds
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Model Portfolio(4)
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Separate / Subadvised Accounts
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College Savings Plans
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Subadvised Accounts
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Canadian Pooled Funds
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Canadian Pooled Funds
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Japanese ITMs(5)
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Japanese ITMs(5)
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Equity
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Fixed income
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Multi-Asset
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||||
U.S.
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International / Global
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U.S.
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International / Global
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U.S. / International / Global
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Large-Cap: Growth, Core, Value
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Global: All-Cap, Concentrated, Equity Income, Growth, Value
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Core Bond
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Global Aggregate
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Target Date/Custom Target Date
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Mid-Cap: Growth, Core, Value
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International Developed: Growth, Concentrated, Core, Small-Cap, Value
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Credit Opportunities
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Global Multi-Sector
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Target Allocation
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Small-Cap: Growth, Core, Value
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International Developed Regional: Australia, Europe, Europe ex UK, Europe Smaller Companies, Europe Core, Japan
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Corporate
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Global Dynamic Bond
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Global Allocation
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Quantitative Equity: Multi-Cap, Factor Portfolios
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Emerging Markets Global: Growth, Value
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Bank Loan
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Global High Income
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Managed Volatility
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Tax Efficient
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Emerging Markets Regional: Asia ex-Japan, China, Emerging Europe, Frontier Markets, Latin America, Middle East, Africa
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High Yield
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Emerging Markets: Corporate, Hard Currency, Local Currency
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Multi-Asset Solutions
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Sectors
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Quantitative Equity: Global Growth, Global Value
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Stable Value
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International Developed
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Real Assets
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Sectors
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Securitized
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Global Corporate
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Retirement Income
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Treasury
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Global High Yield
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Alternatives
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Short Duration
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Global Government
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Municipal
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Asia
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Municipal Ladders
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Quantitative Fixed: Factor Portfolios
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Strategy
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Year closed
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U.S. Mid-Cap Growth
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2010
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U.S. Mid-Cap Value
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2010
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High Yield Bond
|
2012
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U.S. Small-Cap Growth
|
2013
|
U.S. Small-Cap Core
|
2013
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Capital Appreciation
|
2014
|
Global Technology*
|
2017
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Emerging Markets Growth
|
2018
|
International Small-Cap Growth
|
2018
|
T. Rowe Price Subsidiary
|
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Products
|
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Services Provided
|
T. Rowe Price (Luxembourg) Management Sàrl
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SICAVs / FCPs
|
|
Management company
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T. Rowe Price Australia
|
|
AUTs
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|
Investment management
|
T. Rowe Price UK
|
|
OEICs
|
|
Authorized corporate director
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T. Rowe Price (Canada)
|
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Canadian Pooled Funds
|
|
Investment management
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T. Rowe Price Japan
|
|
Japanese ITMs
|
|
Investment management
|
•
|
our financial statement information from our periodic SEC filings in the form of XBRL data files that may be used to facilitate computer-assisted investor analysis;
|
•
|
corporate governance information including our governance guidelines, committee charters, senior officer code of ethics and conduct, and other governance-related policies;
|
•
|
other news and announcements that we may post from time to time that investors might find useful or interesting, including our monthly assets under management disclosure; and
|
•
|
opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.
|
Item 1A.
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Risk Factors.
|
•
|
Investment Performance. If the investment performance of our managed investment portfolios is less than that of our competitors or applicable third-party benchmarks, we could lose existing and potential customers and suffer a decrease in assets under management. Institutional investors in particular, consider changing investment advisers based upon poor relative investment performance. Individual investors in contrast are more likely to react to poor absolute investment performance.
|
•
|
General Market Declines. We derive a significant portion of our revenues from advisory fees on sponsored portfolios. A downturn in stock or bond prices would cause the value of assets under our management to decrease, and may also cause investors to withdraw their investments, thereby further decreasing the level of assets under our management. A decline in equity market valuations may cause investors to transition to lower-fee portfolios such as fixed income, reducing our overall profitability. In addition, international markets, particularly emerging markets, which are often smaller, may not have the liquidity of established markets, may lack established regulations, and may experience significantly more volatility than established markets.
|
•
|
Investor Mobility. Our investors generally may withdraw their funds at any time, without advance notice and with little to no significant penalty.
|
•
|
Capacity Constraints. Prolonged periods of strong relative investment performance and/or strong investor inflows has resulted in and may result in capacity constraints within certain strategies, which can lead to, among other things, the closure of those strategies from additional investor inflows. If certain of our strategies are capacity constrained, our investment results in subsequent periods may be negatively impacted.
|
•
|
Investing Trends. Changes in investing trends, particularly investor preference for passive or alternative investment products, and in retirement savings trends, may reduce interest in our products and may alter our mix of assets under management.
|
•
|
Interest Rate Changes. Investor interest in and the valuation of our fixed income investment funds and portfolios are affected by changes in interest rates.
|
•
|
Geo-Political Exposure. Our managed investment portfolios may have significant investments in international markets that are subject to risk of loss from political or diplomatic developments, government policies, civil unrest, currency fluctuations, illiquidity and capital controls, and changes in legislation related to foreign ownership.
|
•
|
expenses incurred in connection with our multi-year strategic plan to strengthen our long-term competitive position;
|
•
|
variations in the level of total compensation expense due to, among other things, changes in bonuses, stock-based awards, changes in employee benefit costs due to regulatory or plan design changes, changes in our employee count and mix, competitive factors, market performance, and inflation;
|
•
|
changes in the level of our advertising and promotion expenses, including the costs of expanding investment advisory services to investors outside of the U.S. and further penetrating U.S. distribution channels;
|
•
|
expenses and capital costs incurred to maintain and enhance our administrative and operating services infrastructure, such as technology assets, depreciation, amortization, and research and development;
|
•
|
changes in the costs incurred for third-party vendors that perform certain administrative and operating services;
|
•
|
changes in expenses that are correlated to our assets under management, such as distribution and servicing fees;
|
•
|
a future impairment of investments that is recognized in our consolidated balance sheet;
|
•
|
a future impairment of goodwill that is recognized in our consolidated balance sheet;
|
•
|
unanticipated material fluctuations in foreign currency exchange rates applicable to the costs of our operations abroad;
|
•
|
unanticipated costs incurred to protect investor accounts and client goodwill; and
|
•
|
future changes to legal and regulatory requirements and potential litigation;
|
•
|
disruptions of third-party services such as communications, power, and mutual fund transfer agent, investment management, trading, and accounting systems.
|
•
|
decreasing investment valuations in, and returns on, the investment portfolios that we manage,
|
•
|
causing disruptions in national or global economies that decrease investor confidence and make investment products generally less attractive,
|
•
|
incapacitating or inflicting losses of lives among our employees,
|
•
|
interrupting our business operations or those of critical service providers,
|
•
|
triggering technology delays or failures, and
|
•
|
requiring substantial capital expenditures and operating expenses to remediate damage, replace our facilities, and restore our operations.
|
•
|
difficulty in managing, operating, and marketing our international operations;
|
•
|
fluctuations in currency exchange rates which may result in substantial negative effects on assets under our management, revenues, expenses, and assets in our U.S. dollar based financial statements; and
|
•
|
significant adverse changes in international legal and regulatory environments.
|
•
|
As part of the debate in Washington, D.C. and in state legislatures, there has been increasing focus on the framework of the U.S. retirement system. We could experience adverse business impacts if legislative and regulatory changes limit retirement plans to certain products and services, or favor certain investment vehicles, that we do not offer or are not core to our business.
|
•
|
There has been substantial regulatory and legislative activity at federal and state levels regarding standards of care for financial services firms, related to both retirement and taxable accounts. Actions taken by applicable regulatory or legislative bodies may impact our business activities and increase our costs.
|
•
|
The Federal Reserve Board has adopted final regulations related to non-bank Systemically Important Financial Institutions ("SIFIs"), and other jurisdictions are contemplating similar regulation. At this time, US
|
•
|
The Commodity Futures Trading Commission ("CFTC") has adopted certain amendments to its rules that would limit the ability of T. Rowe Price investment products to use futures, swaps, and other derivatives without additional registration. As such, we intend to register certain subsidiaries with the CFTC which would subject us to additional regulatory requirements and costs associated with registrations.
|
•
|
There has been increased global regulatory focus on the manner in which intermediaries are paid for distribution of mutual funds. Changes to long-standing market practices related to fees or enhanced disclosure requirements may negatively impact sales of mutual funds by intermediaries, especially if such requirements are not applied to other investment products.
|
•
|
We remain subject to various state, federal and international laws and regulations related to data privacy and protection of data we maintain concerning our customers and employees. These requirements continue to evolve. For example, California has adopted regulations, effective in January 1, 2020, which, among other things, significantly increased the potential penalties for non-compliance.
|
•
|
After the 2008 financial crisis, global regulations on over-the-counter derivatives spearheaded by The Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States and European Market Infrastructure Regulation in the European Union ("EU") have imposed clearing, margin, trade reporting, electronic trading and recordkeeping requirements on market participants. Alongside their general stabilizing and risk-reducing effect on the markets, these requirements have introduced operational complexity and additional costs to derivatives portfolios.
|
•
|
The revised Markets in Financial Instruments Directive ("MiFID II Directive") and Regulation ("MiFIR") (together “MiFID II”) applied across the EU and member states of the European Economic Area beginning on January 3, 2018. Implementation of MiFID II has significantly impacted both the structure and operation of EU financial markets. Some of the main changes introduced under MiFID II include applying enhanced disclosure requirements, enhancing conduct of business and governance requirements, broadening the scope of pre and post trade transparency, increasing transaction reporting requirements, transforming the relationship between client commissions and research, and further regulation of trading venues. Compliance with MiFID II has increased operational complexity and increased our costs. For example, we began to pay for third-party investment research used by our UK-based investment manager, T. Rowe Price International Ltd, in 2018, and we now pay for all the research needs of our investment professionals globally.
|
•
|
securities analysis,
|
•
|
securities trading,
|
•
|
portfolio management,
|
•
|
customer service,
|
•
|
accounting and internal financial reporting processes and controls, and
|
•
|
regulatory compliance and reporting.
|
•
|
seriously damage our reputation,
|
•
|
allow competitors access to our proprietary business information,
|
•
|
subject us to liability for a failure to safeguard personal or confidential data,
|
•
|
result in the termination of contracts by our existing customers,
|
•
|
subject us to regulatory action, and
|
•
|
require significant capital and operating expenditures to investigate and remediate the breach.
|
Item 2.
|
Properties.
|
Item 3.
|
Legal Proceedings.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
|
1st
quarter
|
|
2nd
quarter
|
|
3rd
quarter
|
|
4th
quarter
|
||||||||
2019
|
$
|
.76
|
|
|
$
|
.76
|
|
|
$
|
.76
|
|
|
$
|
.76
|
|
2018
|
$
|
.70
|
|
|
$
|
.70
|
|
|
$
|
.70
|
|
|
$
|
.70
|
|
|
|
Employee and non-employee director plans
|
|
Employee stock purchase plan
|
|
Total
|
|||
Exercise of outstanding options
|
|
7,388,068
|
|
|
—
|
|
|
7,388,068
|
|
Settlement of outstanding restricted stock units
|
|
6,775,504
|
|
|
—
|
|
|
6,775,504
|
|
Future issuances
|
|
22,213,930
|
|
|
1,964,676
|
|
|
24,178,606
|
|
Total
|
|
36,377,502
|
|
|
1,964,676
|
|
|
38,342,178
|
|
Month
|
|
Total number of
shares purchased
|
|
Average price
paid per share
|
|
Total number of
shares purchased as
part of publicly
announced program
|
|
Maximum number of
shares that may yet
be purchased under
the program
|
|||||
October
|
|
1,156,989
|
|
|
$
|
109.69
|
|
|
1,155,593
|
|
|
17,500,047
|
|
November
|
|
108,595
|
|
|
$
|
120.84
|
|
|
—
|
|
|
17,500,047
|
|
December
|
|
285,389
|
|
|
$
|
122.63
|
|
|
125,000
|
|
|
17,375,047
|
|
Total
|
|
1,550,973
|
|
|
$
|
112.85
|
|
|
1,280,593
|
|
|
|
Authorization dates
|
|
12/31/2018
|
|
Total Number of
Shares Purchased |
|
Maximum Number of Shares that May Yet Be Purchased at 12/31/2019
|
|||
April 2018
|
|
8,655,640
|
|
|
(1,280,593
|
)
|
|
7,375,047
|
|
February 2019
|
|
10,000,000
|
|
|
—
|
|
|
10,000,000
|
|
|
|
18,655,640
|
|
|
(1,280,593
|
)
|
|
17,375,047
|
|
Item 6.
|
Selected Financial Data.
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(in millions, except per-share data)
|
||||||||||||||||||
Net revenues(1)
|
$
|
5,618
|
|
|
$
|
5,373
|
|
|
$
|
4,855
|
|
|
$
|
4,285
|
|
|
$
|
4,201
|
|
Net operating income
|
$
|
2,387
|
|
|
$
|
2,361
|
|
|
$
|
2,109
|
|
|
$
|
1,733
|
|
|
$
|
1,899
|
|
Net income
|
$
|
2,249
|
|
|
$
|
1,769
|
|
|
$
|
1,581
|
|
|
$
|
1,254
|
|
|
$
|
1,223
|
|
Net income (loss) attributable to redeemable non-controlling interests
|
$
|
118
|
|
|
$
|
(69
|
)
|
|
$
|
83
|
|
|
$
|
39
|
|
|
$
|
—
|
|
Net income attributable to T. Rowe Price Group
|
$
|
2,131
|
|
|
$
|
1,838
|
|
|
$
|
1,498
|
|
|
$
|
1,215
|
|
|
$
|
1,223
|
|
Adjusted net income attributable to
T. Rowe Price Group(2) |
$
|
1,976
|
|
|
$
|
1,807
|
|
|
$
|
1,361
|
|
|
$
|
1,149
|
|
|
$
|
1,160
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per common share information
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
$
|
8.82
|
|
|
$
|
7.41
|
|
|
$
|
6.07
|
|
|
$
|
4.85
|
|
|
$
|
4.74
|
|
Diluted earnings
|
$
|
8.70
|
|
|
$
|
7.27
|
|
|
$
|
5.97
|
|
|
$
|
4.75
|
|
|
$
|
4.63
|
|
Adjusted diluted earnings(2)
|
$
|
8.07
|
|
|
$
|
7.15
|
|
|
$
|
5.43
|
|
|
$
|
4.49
|
|
|
$
|
4.39
|
|
Cash dividends declared(3)
|
$
|
3.04
|
|
|
$
|
2.80
|
|
|
$
|
2.28
|
|
|
$
|
2.16
|
|
|
$
|
4.08
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average common shares outstanding
|
235.4
|
|
|
242.2
|
|
|
241.2
|
|
|
245.5
|
|
|
254.6
|
|
|||||
Weighted-average common shares outstanding assuming dilution
|
238.6
|
|
|
246.9
|
|
|
245.1
|
|
|
250.3
|
|
|
260.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance sheet data (in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
9,330
|
|
|
$
|
7,689
|
|
|
$
|
7,535
|
|
|
$
|
6,226
|
|
|
$
|
5,107
|
|
Redeemable non-controlling interests
|
$
|
1,121
|
|
|
$
|
740
|
|
|
$
|
993
|
|
|
$
|
687
|
|
|
$
|
—
|
|
Stockholders’ equity
|
$
|
7,102
|
|
|
$
|
6,124
|
|
|
$
|
5,824
|
|
|
$
|
5,009
|
|
|
$
|
4,762
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets under management (in billions)
|
$
|
1,206.8
|
|
|
$
|
962.3
|
|
|
$
|
991.1
|
|
|
$
|
810.8
|
|
|
$
|
763.1
|
|
S&P 500 Index
|
31.5%
|
NASDAQ Composite Index(1)
|
35.2%
|
Russell 2000 Index
|
25.5%
|
MSCI EAFE (Europe, Australasia, and Far East) Index
|
22.7%
|
MSCI Emerging Markets Index
|
18.9%
|
(in billions)
|
|
U.S. mutual funds
|
|
Subadvised and separate accounts
|
|
Other investment products
|
|
Total
|
||||||||
Assets under management at December 31, 2016
|
|
$
|
514.2
|
|
|
$
|
206.9
|
|
|
$
|
89.7
|
|
|
$
|
810.8
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash flows before client transfers
|
|
9.4
|
|
|
1.4
|
|
|
3.2
|
|
|
14.0
|
|
||||
Client transfers(1)
|
|
(20.2
|
)
|
|
1.7
|
|
|
18.5
|
|
|
—
|
|
||||
Net cash flows after client transfers
|
|
(10.8
|
)
|
|
3.1
|
|
|
21.7
|
|
|
14.0
|
|
||||
Net market appreciation and income
|
|
104.6
|
|
|
45.2
|
|
|
18.2
|
|
|
168.0
|
|
||||
Distributions not reinvested
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
||||
Change during the period
|
|
92.1
|
|
|
48.3
|
|
|
39.9
|
|
|
180.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Assets under management at December 31, 2017
|
|
606.3
|
|
|
255.2
|
|
|
129.6
|
|
|
991.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net cash flows before client transfers
|
|
4.4
|
|
|
(.2
|
)
|
|
9.0
|
|
|
13.2
|
|
||||
Client transfers(1)
|
|
(20.5
|
)
|
|
2.8
|
|
|
17.7
|
|
|
—
|
|
||||
Net cash flows after client transfers
|
|
(16.1
|
)
|
|
2.6
|
|
|
26.7
|
|
|
13.2
|
|
||||
Net market depreciation, net of income
|
|
(22.7
|
)
|
|
(7.8
|
)
|
|
(8.4
|
)
|
|
(38.9
|
)
|
||||
Distributions not reinvested
|
|
(3.0
|
)
|
|
—
|
|
|
(.1
|
)
|
|
(3.1
|
)
|
||||
Change during the period
|
|
(41.8
|
)
|
|
(5.2
|
)
|
|
18.2
|
|
|
(28.8
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Assets under management at December 31, 2018
|
|
564.5
|
|
|
250.0
|
|
|
147.8
|
|
|
962.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net cash flows before client transfers
|
|
7.6
|
|
|
(.3
|
)
|
|
5.9
|
|
|
13.2
|
|
||||
Client transfers(1)
|
|
(23.2
|
)
|
|
1.1
|
|
|
22.1
|
|
|
—
|
|
||||
Net cash flows after client transfers
|
|
(15.6
|
)
|
|
.8
|
|
|
28.0
|
|
|
13.2
|
|
||||
Net market appreciation and income
|
|
135.6
|
|
|
63.0
|
|
|
34.5
|
|
|
233.1
|
|
||||
Distributions not reinvested
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
||||
Change during the period
|
|
118.2
|
|
|
63.8
|
|
|
62.5
|
|
|
244.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Assets under management at December 31, 2019
|
|
$
|
682.7
|
|
|
$
|
313.8
|
|
|
$
|
210.3
|
|
|
$
|
1,206.8
|
|
(in billions)
|
|
Equity
|
|
Fixed income, including money market
|
|
Multi-asset(1)
|
|
Total
|
||||||||
Assets under management at December 31, 2016
|
|
$
|
450.6
|
|
|
$
|
121.2
|
|
|
$
|
239.0
|
|
|
$
|
810.8
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash flows
|
|
(1.6
|
)
|
|
8.6
|
|
|
7.0
|
|
|
14.0
|
|
||||
Net market appreciation and income(2)
|
|
115.1
|
|
|
4.6
|
|
|
46.6
|
|
|
166.3
|
|
||||
Change during the period
|
|
113.5
|
|
|
13.2
|
|
|
53.6
|
|
|
180.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Assets under management at December 31, 2017
|
|
564.1
|
|
|
134.4
|
|
|
292.6
|
|
|
991.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net cash flows
|
|
(1.4
|
)
|
|
2.9
|
|
|
11.7
|
|
|
13.2
|
|
||||
Net market depreciation, net of income(2)
|
|
(22.8
|
)
|
|
(1.2
|
)
|
|
(18.0
|
)
|
|
(42.0
|
)
|
||||
Change during the period
|
|
(24.2
|
)
|
|
1.7
|
|
|
(6.3
|
)
|
|
(28.8
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Assets under management at December 31, 2018
|
|
539.9
|
|
|
136.1
|
|
|
286.3
|
|
|
962.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net cash flows
|
|
(.2
|
)
|
|
3.5
|
|
|
9.9
|
|
|
13.2
|
|
||||
Net market appreciation and income(2)
|
|
159.2
|
|
|
8.3
|
|
|
63.8
|
|
|
231.3
|
|
||||
Change during the period
|
|
159.0
|
|
|
11.8
|
|
|
73.7
|
|
|
244.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Assets under management at December 31, 2019
|
|
$
|
698.9
|
|
|
$
|
147.9
|
|
|
$
|
360.0
|
|
|
$
|
1,206.8
|
|
(in billions)
|
12/31/19
|
|
12/31/18
|
|
12/31/17
|
||||||
U.S. mutual funds
|
$
|
164.8
|
|
|
$
|
144.8
|
|
|
$
|
168.4
|
|
Separately managed accounts
|
8.4
|
|
|
5.9
|
|
|
1.7
|
|
|||
Collective investment trusts
|
119.2
|
|
|
79.7
|
|
|
63.7
|
|
|||
|
$
|
292.4
|
|
|
$
|
230.4
|
|
|
$
|
233.8
|
|
|
|
1 year
|
|
3 years
|
|
5 years
|
|
10 years
|
Outperformed Morningstar median(2)
|
|
|
|
|
|
|
|
|
All funds
|
|
64%
|
|
75%
|
|
80%
|
|
82%
|
Multi-asset funds
|
|
69%
|
|
85%
|
|
94%
|
|
95%
|
|
|
|
|
|
|
|
|
|
Top Morningstar quartile(2)
|
|
|
|
|
|
|
|
|
All funds
|
|
32%
|
|
45%
|
|
50%
|
|
55%
|
Multi-asset funds
|
|
36%
|
|
59%
|
|
65%
|
|
74%
|
|
|
|
2019 compared with 2018
|
|
2018 compared with 2017
|
||||||||||||||||||||
(in millions, except per-share data)
|
2019
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. GAAP basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment advisory fees
|
$
|
5,112.5
|
|
|
$
|
4,850.6
|
|
|
$
|
4,295.8
|
|
|
$
|
261.9
|
|
|
5.4
|
%
|
|
$
|
554.8
|
|
|
12.9
|
%
|
Net revenues
|
$
|
5,617.9
|
|
|
$
|
5,372.6
|
|
|
$
|
4,854.9
|
|
|
$
|
245.3
|
|
|
4.6
|
%
|
|
$
|
517.7
|
|
|
10.7
|
%
|
Operating expenses
|
$
|
3,230.9
|
|
|
$
|
3,011.2
|
|
|
$
|
2,746.1
|
|
|
$
|
219.7
|
|
|
7.3
|
%
|
|
$
|
265.1
|
|
|
9.7
|
%
|
Net operating income
|
$
|
2,387.0
|
|
|
$
|
2,361.4
|
|
|
$
|
2,108.8
|
|
|
$
|
25.6
|
|
|
1.1
|
%
|
|
$
|
252.6
|
|
|
12.0
|
%
|
Non-operating income(1)
|
$
|
540.3
|
|
|
$
|
23.2
|
|
|
$
|
396.3
|
|
|
$
|
517.1
|
|
|
n/m
|
|
|
$
|
(373.1
|
)
|
|
n/m
|
|
Net income attributable to
T. Rowe Price Group
|
$
|
2,131.3
|
|
|
$
|
1,837.5
|
|
|
$
|
1,497.8
|
|
|
$
|
293.8
|
|
|
16.0
|
%
|
|
$
|
339.7
|
|
|
22.7
|
%
|
Diluted earnings per share on common share
|
$
|
8.70
|
|
|
$
|
7.27
|
|
|
$
|
5.97
|
|
|
$
|
1.43
|
|
|
19.7
|
%
|
|
$
|
1.30
|
|
|
21.8
|
%
|
Weighted average common shares outstanding assuming dilution
|
238.6
|
|
|
246.9
|
|
|
245.1
|
|
|
(8.3
|
)
|
|
(3.4
|
)%
|
|
1.8
|
|
|
.7
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted non-GAAP basis(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
$
|
3,149.8
|
|
|
$
|
3,025.5
|
|
|
$
|
2,777.7
|
|
|
$
|
124.3
|
|
|
4.1
|
%
|
|
$
|
247.8
|
|
|
8.9
|
%
|
Net income attributable to
T. Rowe Price Group
|
$
|
1,975.6
|
|
|
$
|
1,807.4
|
|
|
$
|
1,361.1
|
|
|
$
|
168.2
|
|
|
9.3
|
%
|
|
$
|
446.3
|
|
|
32.8
|
%
|
Diluted earnings per share on common share
|
$
|
8.07
|
|
|
$
|
7.15
|
|
|
$
|
5.43
|
|
|
$
|
.92
|
|
|
12.9
|
%
|
|
$
|
1.72
|
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets under management (in billions)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average assets under management
|
$
|
1,109.3
|
|
|
$
|
1,036.5
|
|
|
$
|
909.0
|
|
|
$
|
72.8
|
|
|
7.0
|
%
|
|
$
|
127.5
|
|
|
14.0
|
%
|
Ending assets under management
|
$
|
1,206.8
|
|
|
$
|
962.3
|
|
|
$
|
991.1
|
|
|
$
|
244.5
|
|
|
25.4
|
%
|
|
$
|
(28.8
|
)
|
|
(2.9
|
)%
|
(in millions)
|
Pre-tax operating expense (income)
|
|
Pre-tax operating cash inflows (outflows)
|
||||
2016
|
$
|
66.2
|
|
|
$
|
(166.2
|
)
|
2017
|
(50.0
|
)
|
|
150.0
|
|
||
2018
|
(15.2
|
)
|
|
15.2
|
|
||
Total impact from Dell appraisal rights matter
|
$
|
1.0
|
|
|
$
|
(1.0
|
)
|
|
|
|
2019 compared with 2018
|
|
2018 compared with 2017
|
||||||||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
||||||||||||
Investment advisory fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. mutual funds
|
$
|
3,452.5
|
|
|
$
|
3,375.0
|
|
|
$
|
3,080.0
|
|
|
$
|
77.5
|
|
|
2.3
|
%
|
|
$
|
295.0
|
|
|
9.6
|
%
|
Subadvised and separate accounts and other investment products
|
1,660.0
|
|
|
1,475.6
|
|
|
1,215.8
|
|
|
184.4
|
|
|
12.5
|
%
|
|
259.8
|
|
|
21.4
|
%
|
|||||
|
5,112.5
|
|
|
4,850.6
|
|
|
4,295.8
|
|
|
261.9
|
|
|
5.4
|
%
|
|
554.8
|
|
|
12.9
|
%
|
|||||
Administrative, distribution, and servicing fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Administrative fees
|
385.4
|
|
|
384.0
|
|
|
412.1
|
|
|
1.4
|
|
|
.4
|
%
|
|
(28.1
|
)
|
|
(6.8
|
)%
|
|||||
Distribution and servicing fees
|
120.0
|
|
|
138.0
|
|
|
147.0
|
|
|
(18.0
|
)
|
|
(13.0
|
)%
|
|
(9.0
|
)
|
|
(6.1
|
)%
|
|||||
|
505.4
|
|
|
522.0
|
|
|
559.1
|
|
|
(16.6
|
)
|
|
(3.2
|
)%
|
|
(37.1
|
)
|
|
(6.6
|
)%
|
|||||
Net revenues
|
$
|
5,617.9
|
|
|
$
|
5,372.6
|
|
|
$
|
4,854.9
|
|
|
$
|
245.3
|
|
|
4.6
|
%
|
|
$
|
517.7
|
|
|
10.7
|
%
|
|
2019 compared with 2018
|
|
2018 compared with 2017
|
||||||||
|
Increase in average assets under management
|
|
Increase in investment advisory fees
|
|
Increase in average assets under management
|
|
Increase in investment advisory fees
|
||||
U.S. mutual funds
|
3.0
|
%
|
|
2.3
|
%
|
|
9.4
|
%
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
||||
Subadvised and separate accounts and other investment products
|
13.1
|
%
|
|
12.5
|
%
|
|
21.8
|
%
|
|
21.4
|
%
|
|
|
|
|
|
|
|
|
||||
Total investment advisory fees
|
7.0
|
%
|
|
5.4
|
%
|
|
14.0
|
%
|
|
12.9
|
%
|
|
|
|
2019 compared with 2018
|
|
2018 compared with 2017
|
||||||||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
||||||||||||
Compensation and related costs
|
$
|
1,969.2
|
|
|
$
|
1,808.6
|
|
|
$
|
1,664.9
|
|
|
$
|
160.6
|
|
|
8.9
|
%
|
|
$
|
143.7
|
|
|
8.6
|
%
|
Distribution and servicing costs
|
262.5
|
|
|
281.2
|
|
|
262.6
|
|
|
(18.7
|
)
|
|
(6.7
|
)%
|
|
18.6
|
|
|
7.1
|
%
|
|||||
Advertising and promotion
|
96.8
|
|
|
99.6
|
|
|
92.4
|
|
|
(2.8
|
)
|
|
(2.8
|
)%
|
|
7.2
|
|
|
7.8
|
%
|
|||||
Product-related costs
|
153.2
|
|
|
157.1
|
|
|
146.0
|
|
|
(3.9
|
)
|
|
(2.5
|
)%
|
|
11.1
|
|
|
7.6
|
%
|
|||||
Technology, occupancy, and facility costs
|
427.3
|
|
|
383.9
|
|
|
350.5
|
|
|
43.4
|
|
|
11.3
|
%
|
|
33.4
|
|
|
9.5
|
%
|
|||||
General, administrative, and other
|
321.9
|
|
|
296.0
|
|
|
279.7
|
|
|
25.9
|
|
|
8.8
|
%
|
|
16.3
|
|
|
5.8
|
%
|
|||||
Nonrecurring net recoveries related to Dell appraisal rights matter(1)
|
—
|
|
|
(15.2
|
)
|
|
(50.0
|
)
|
|
15.2
|
|
|
n/m
|
|
|
34.8
|
|
|
n/m
|
|
|||||
Total operating expenses
|
$
|
3,230.9
|
|
|
$
|
3,011.2
|
|
|
$
|
2,746.1
|
|
|
$
|
219.7
|
|
|
7.3
|
%
|
|
$
|
265.1
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
2019 compared with 2018
|
|
2018 compared with 2017
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
$ Change
|
|
$ Change
|
||||||||||
Net gains (losses) from non-consolidated T. Rowe Price investment products
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and discretionary investments
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend income
|
$
|
67.6
|
|
|
$
|
48.8
|
|
|
$
|
15.2
|
|
|
$
|
18.8
|
|
|
$
|
33.6
|
|
Market related gains (losses) and equity in earnings
|
58.4
|
|
|
(16.0
|
)
|
|
1.3
|
|
|
74.4
|
|
|
(17.3
|
)
|
|||||
Seed capital investments
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend income
|
2.3
|
|
|
3.9
|
|
|
7.0
|
|
|
(1.6
|
)
|
|
(3.1
|
)
|
|||||
Market related gains (losses) and equity in earnings
|
42.7
|
|
|
(22.5
|
)
|
|
54.8
|
|
|
65.2
|
|
|
(77.3
|
)
|
|||||
Net realized gains on dispositions of available-for-sale investments
|
—
|
|
|
—
|
|
|
83.1
|
|
|
—
|
|
|
(83.1
|
)
|
|||||
Net gain (loss) recognized upon deconsolidation
|
.1
|
|
|
3.6
|
|
|
.1
|
|
|
(3.5
|
)
|
|
3.5
|
|
|||||
Investments used to hedge the supplemental savings plan liability
|
67.9
|
|
|
(6.1
|
)
|
|
12.3
|
|
|
74.0
|
|
|
(18.4
|
)
|
|||||
Total net gains from non-consolidated T. Rowe Price investment products
|
239.0
|
|
|
11.7
|
|
|
173.8
|
|
|
227.3
|
|
|
(162.1
|
)
|
|||||
Other investment income
|
21.4
|
|
|
107.5
|
|
|
24.5
|
|
|
(86.1
|
)
|
|
83.0
|
|
|||||
Net gains on investments
|
260.4
|
|
|
119.2
|
|
|
198.3
|
|
|
141.2
|
|
|
(79.1
|
)
|
|||||
Net gains on consolidated sponsored investment portfolios
|
272.9
|
|
|
(92.9
|
)
|
|
193.9
|
|
|
365.8
|
|
|
(286.8
|
)
|
|||||
Other income (loss), including foreign currency gains and losses
|
7.0
|
|
|
(3.1
|
)
|
|
4.1
|
|
|
10.1
|
|
|
(7.2
|
)
|
|||||
Non-operating income
|
$
|
540.3
|
|
|
$
|
23.2
|
|
|
$
|
396.3
|
|
|
$
|
517.1
|
|
|
$
|
(373.1
|
)
|
|
|
|
2019 compared with 2018
|
2018 compared with 2017
|
|||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
$ Change
|
|
$ Change
|
||||||||||
Operating expenses reflected in net operating income
|
$
|
(14.7
|
)
|
|
$
|
(12.7
|
)
|
|
$
|
(12.3
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
(.4
|
)
|
Net investment income (loss) reflected in non-operating income
|
272.9
|
|
|
(92.9
|
)
|
|
193.9
|
|
|
365.8
|
|
|
(286.8
|
)
|
|||||
Impact on income before taxes
|
$
|
258.2
|
|
|
$
|
(105.6
|
)
|
|
$
|
181.6
|
|
|
$
|
363.8
|
|
|
$
|
(287.2
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) attributable to our interest in the consolidated T. Rowe Price investment products
|
$
|
140.6
|
|
|
$
|
(36.8
|
)
|
|
$
|
98.2
|
|
|
$
|
177.4
|
|
|
$
|
(135.0
|
)
|
Net income (loss) attributable to redeemable non-controlling interests (unrelated third-party investors)
|
117.6
|
|
|
(68.8
|
)
|
|
83.4
|
|
|
186.4
|
|
|
(152.2
|
)
|
|||||
Impact on income before taxes
|
$
|
258.2
|
|
|
$
|
(105.6
|
)
|
|
$
|
181.6
|
|
|
$
|
363.8
|
|
|
$
|
(287.2
|
)
|
|
2019
|
|
2018
|
|
2017
|
|||
Statutory U.S. federal income tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Impact of nonrecurring charge relating to U.S. tax reform
|
—
|
|
|
.8
|
|
|
2.9
|
|
Impact of nonrecurring charge related to Maryland state tax legislation
|
—
|
|
|
.3
|
|
|
—
|
|
State income taxes for current year, net of federal income tax benefits(1)
|
4.3
|
|
|
4.6
|
|
|
3.9
|
|
Net income attributable to redeemable non-controlling interests
|
(1.0
|
)
|
|
.7
|
|
|
(1.3
|
)
|
Net excess tax benefits from stock-based compensation plans activity
|
(1.5
|
)
|
|
(1.7
|
)
|
|
(3.0
|
)
|
Other items
|
.4
|
|
|
.1
|
|
|
(.6
|
)
|
Effective income tax rate
|
23.2
|
%
|
|
25.8
|
%
|
|
36.9
|
%
|
|
2019
|
||||||||||||||||||||||
(in millions)
|
Operating expenses
|
|
Net operating income
|
|
Non-operating income
|
|
Provision (benefit) for income taxes(7)
|
|
Net income attributable to T. Rowe Price Group
|
|
Diluted earnings per share(8)
|
||||||||||||
U.S. GAAP Basis
|
$
|
3,230.9
|
|
|
$
|
2,387.0
|
|
|
$
|
540.3
|
|
|
$
|
678.4
|
|
|
$
|
2,131.3
|
|
|
$
|
8.70
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated T. Rowe Price
investment products(1) |
(7.9
|
)
|
|
14.7
|
|
|
(272.9
|
)
|
|
(35.7
|
)
|
|
(104.9
|
)
|
|
(.42
|
)
|
||||||
Supplemental savings plan liability(2)
|
(73.2
|
)
|
|
73.2
|
|
|
(67.9
|
)
|
|
1.3
|
|
|
4.0
|
|
|
.02
|
|
||||||
Other non-operating income(3)
|
—
|
|
|
—
|
|
|
(73.5
|
)
|
|
(18.7
|
)
|
|
(54.8
|
)
|
|
(.23
|
)
|
||||||
Adjusted Non-GAAP Basis
|
$
|
3,149.8
|
|
|
$
|
2,474.9
|
|
|
$
|
126.0
|
|
|
$
|
625.3
|
|
|
$
|
1,975.6
|
|
|
$
|
8.07
|
|
|
2018
|
||||||||||||||||||||||
(in millions)
|
Operating expenses
|
|
Net operating income
|
|
Non-operating income
|
|
Provision (benefit) for income taxes(7)
|
|
Net income attributable to T. Rowe Price Group
|
|
Diluted earnings per share(8)
|
||||||||||||
U.S. GAAP Basis
|
$
|
3,011.2
|
|
|
$
|
2,361.4
|
|
|
$
|
23.2
|
|
|
$
|
615.9
|
|
|
$
|
1,837.5
|
|
|
$
|
7.27
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated T. Rowe Price
investment products(1) |
(6.5
|
)
|
|
12.7
|
|
|
92.9
|
|
|
6.5
|
|
|
30.3
|
|
|
.12
|
|
||||||
Supplemental savings plan liability(2)
|
5.6
|
|
|
(5.6
|
)
|
|
6.1
|
|
|
.1
|
|
|
.4
|
|
|
—
|
|
||||||
Other non-operating income(3)
|
—
|
|
|
—
|
|
|
(93.7
|
)
|
|
(16.7
|
)
|
|
(77.0
|
)
|
|
(.30
|
)
|
||||||
Nonrecurring charge related to
enactment of U.S. tax reform(4) |
—
|
|
|
—
|
|
|
—
|
|
|
(20.8
|
)
|
|
20.8
|
|
|
.08
|
|
||||||
Nonrecurring charge related to
enactment of Maryland state tax legislation(5) |
—
|
|
|
—
|
|
|
—
|
|
|
(7.9
|
)
|
|
7.9
|
|
|
.03
|
|
||||||
Nonrecurring net charge (recoveries)
related to Dell appraisal rights matter(6) |
15.2
|
|
|
(15.2
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
(12.5
|
)
|
|
(.05
|
)
|
||||||
Adjusted Non-GAAP Basis
|
$
|
3,025.5
|
|
|
$
|
2,353.3
|
|
|
$
|
28.5
|
|
|
$
|
574.4
|
|
|
$
|
1,807.4
|
|
|
$
|
7.15
|
|
|
2017
|
||||||||||||||||||||||
(in millions)
|
Operating expenses
|
|
Net operating income
|
|
Non-operating income
|
|
Provision (benefit) for income taxes(7)
|
|
Net income attributable to T. Rowe Price Group
|
|
Diluted earnings per share(8)
|
||||||||||||
U.S. GAAP Basis
|
$
|
2,746.1
|
|
|
$
|
2,108.8
|
|
|
$
|
396.3
|
|
|
$
|
923.9
|
|
|
$
|
1,497.8
|
|
|
$
|
5.97
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated T. Rowe Price
investment products(1) |
(6.7
|
)
|
|
12.3
|
|
|
(193.9
|
)
|
|
(37.8
|
)
|
|
(60.3
|
)
|
|
(.24
|
)
|
||||||
Supplemental savings plan liability(2)
|
(11.7
|
)
|
|
11.7
|
|
|
(12.3
|
)
|
|
(.3
|
)
|
|
(.4
|
)
|
|
—
|
|
||||||
Other non-operating income(3)
|
—
|
|
|
—
|
|
|
(190.1
|
)
|
|
(73.4
|
)
|
|
(116.7
|
)
|
|
(.46
|
)
|
||||||
Nonrecurring charge related to
enactment of U.S. tax reform(4) |
—
|
|
|
—
|
|
|
—
|
|
|
(71.1
|
)
|
|
71.1
|
|
|
.28
|
|
||||||
Nonrecurring net charge (recoveries)
related to Dell appraisal rights matter(6) |
50.0
|
|
|
(50.0
|
)
|
|
—
|
|
|
(19.6
|
)
|
|
(30.4
|
)
|
|
(.12
|
)
|
||||||
Adjusted Non-GAAP Basis
|
$
|
2,777.7
|
|
|
$
|
2,082.8
|
|
|
$
|
—
|
|
|
$
|
721.7
|
|
|
$
|
1,361.1
|
|
|
$
|
5.43
|
|
|
2016
|
||||||||||||||||||||||
(in millions)
|
Operating expenses
|
|
Net operating income
|
|
Non-operating income
|
|
Provision (benefit) for income taxes(7)
|
|
Net income attributable to T. Rowe Price Group
|
|
Diluted earnings per share(8)
|
||||||||||||
U.S. GAAP Basis
|
$
|
2,551.4
|
|
|
$
|
1,733.4
|
|
|
$
|
227.1
|
|
|
$
|
706.5
|
|
|
$
|
1,215.0
|
|
|
$
|
4.75
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated T. Rowe Price
investment products(1) |
(6.5
|
)
|
|
13.0
|
|
|
(121.1
|
)
|
|
(27.1
|
)
|
|
(42.0
|
)
|
|
(.16
|
)
|
||||||
Other non-operating income(3)
|
—
|
|
|
—
|
|
|
(106.0
|
)
|
|
(41.7
|
)
|
|
(64.3
|
)
|
|
(.25
|
)
|
||||||
Nonrecurring net charge (recoveries)
related to Dell appraisal rights matter(6) |
(66.2
|
)
|
|
66.2
|
|
|
—
|
|
|
26.0
|
|
|
40.2
|
|
|
.15
|
|
||||||
Adjusted Non-GAAP Basis
|
$
|
2,478.7
|
|
|
$
|
1,812.6
|
|
|
$
|
—
|
|
|
$
|
663.7
|
|
|
$
|
1,148.9
|
|
|
$
|
4.49
|
|
|
2015
|
||||||||||||||||||||||
(in millions)
|
Operating expenses
|
|
Net operating income
|
|
Non-operating income
|
|
Provision (benefit) for income taxes(7)
|
|
Net income attributable to T. Rowe Price Group
|
|
Diluted earnings per share(8)
|
||||||||||||
U.S. GAAP Basis
|
$
|
2,301.7
|
|
|
$
|
1,898.9
|
|
|
$
|
103.5
|
|
|
$
|
779.4
|
|
|
$
|
1,223.0
|
|
|
$
|
4.63
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated T. Rowe Price
investment products(1) |
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
(.6
|
)
|
|
(.9
|
)
|
|
(.01
|
)
|
||||||
Other non-operating income(3)
|
—
|
|
|
—
|
|
|
(102.0
|
)
|
|
(40.2
|
)
|
|
(61.8
|
)
|
|
(.23
|
)
|
||||||
Adjusted Non-GAAP Basis
|
$
|
2,301.7
|
|
|
$
|
1,898.9
|
|
|
$
|
—
|
|
|
$
|
738.6
|
|
|
$
|
1,160.3
|
|
|
$
|
4.39
|
|
(1)
|
These non-GAAP adjustments remove the impact the consolidated T. Rowe Price investment products have on our U.S. GAAP consolidated statements of income. Specifically, we add back the operating expenses and subtract the investment income of the consolidated T. Rowe Price investment products. The adjustment to our operating expenses represents the operating expenses of the consolidated products, net of the elimination of related management and administrative fees. The adjustment to net income attributable to T. Rowe Price Group represents the net income of the consolidated products, net of redeemable non-controlling interest. We remove the impact of the consolidated
|
(2)
|
These non-GAAP adjustments remove the compensation expense from market valuation changes in the supplemental savings plan liability and the related net gains (losses) on investments designated as an economic hedge against the related liability. Amounts deferred under the supplemental savings plan are adjusted for appreciation (depreciation) of hypothetical investments chosen by participants. We use T. Rowe Price investment products to economically hedge the exposure to these market movements. We believe it is useful to offset the non-operating investment income (loss) realized on the hedges against the related compensation expense and remove the net impact to help the reader's ability to understand our core operating results and to increase comparability period to period.
|
(3)
|
This non-GAAP adjustment represents the other non-operating income (loss) and the net gains (losses) earned on our non-consolidated investment portfolio that are not designated as economic hedges of the supplemental savings plan liability, and, beginning in the second quarter of 2018, non-consolidated seed investments and other investments that are not part of the cash and discretionary investment portfolio. In the second quarter of 2018, we decided to retain the investment gains recognized on our non-consolidated cash and discretionary investments as these assets and related income (loss) are considered part of our core operations. The impact on previously reported non-GAAP measures is immaterial. We believe adjusting for these non-operating income (loss) items helps the reader’s ability to understand our core operating results and increases comparability to prior years. Additionally, we do not emphasize the impact of the portion of non-operating income (loss) removed when managing and evaluating our core performance.
|
(4)
|
During the second quarter of 2018, we recognized a nonrecurring charge of $20.8 million for an adjustment made to the charge taken in 2017 related to the enactment of U.S. tax reform. We believe it is useful to readers of our consolidated statements of income to adjust for this nonrecurring charge in arriving at net income attributable to
|
(5)
|
During the second quarter of 2018, we recognized a nonrecurring charge of $7.9 million for the remeasurement of our deferred tax assets and liabilities to reflect the effect of Maryland state tax legislation enacted on April 24, 2018. We believe it is useful to readers of our consolidated statements of income to adjust for this nonrecurring charge in arriving at net income attributable to T. Rowe Price Group and diluted earnings per share.
|
(6)
|
In 2016, we recognized a nonrecurring charge, net of insurance recoveries, of $66.2 million related to our decision to compensate certain clients in regard to the Dell appraisal rights matter. In 2017, we recognized additional insurance recoveries of $50 million as a reduction in operating expenses. During 2018, we recognized an additional reduction in operating expenses of $15.2 million upon recovering a portion of the payments we made to our clients in 2016. We believe it is useful to our readers of our consolidated statements of income to adjust for these charges and nonrecurring recoveries in arriving at adjusted operating expenses, net operating income, provision for income taxes, net income attributable to T. Rowe Price Group and diluted earnings per share.
|
(7)
|
The income tax impacts were calculated in order to achieve an overall non-GAAP effective tax rate of 24.0% for 2019, 24.1% for 2018, 34.7% for 2017, 36.6% for 2016, and 38.9% for 2015. We estimate that our effective tax rate for the full-year 2020 on a non-GAAP basis will be in the range of 23.5% to 25.5%.
|
(8)
|
This non-GAAP measure was calculated by applying the two-class method to adjusted net income attributable to
|
|
|
Year ended
|
||||||||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Adjusted net income attributable to T. Rowe Price Group
|
|
$
|
1,975.6
|
|
|
$
|
1,807.4
|
|
|
$
|
1,361.1
|
|
|
$
|
1,148.9
|
|
|
$
|
1,160.3
|
|
Less: net income allocated to outstanding restricted stock and stock unit holders
|
|
50.9
|
|
|
42.5
|
|
|
30.5
|
|
|
24.2
|
|
|
15.2
|
|
|||||
Adjusted net income allocated to common stockholders
|
|
$
|
1,924.7
|
|
|
$
|
1,764.9
|
|
|
$
|
1,330.6
|
|
|
$
|
1,124.7
|
|
|
$
|
1,145.1
|
|
(in millions)
|
12/31/2019
|
|
12/31/2018
|
||||
Cash and cash equivalents
|
$
|
1,781.8
|
|
|
$
|
1,425.2
|
|
Discretionary investments
|
1,899.6
|
|
|
1,597.1
|
|
||
Total cash and discretionary investments
|
3,681.4
|
|
|
3,022.3
|
|
||
Redeemable seed capital investments
|
1,325.6
|
|
|
1,118.9
|
|
||
Investments used to hedge the supplemental savings plan liability
|
561.1
|
|
|
381.3
|
|
||
Total cash and investments in T. Rowe Price products
|
$
|
5,568.1
|
|
|
$
|
4,522.5
|
|
(in millions)
|
|
Cash and cash equivalents
|
|
Investments
|
|
Net assets of consolidated T. Rowe Price investment products *
|
|
12/31/2019
|
||||||||
Cash and discretionary investments
|
|
$
|
1,781.8
|
|
|
$
|
1,831.8
|
|
|
$
|
67.8
|
|
|
$
|
3,681.4
|
|
Seed capital investments
|
|
—
|
|
|
276.7
|
|
|
1,048.9
|
|
|
1,325.6
|
|
||||
Investments used to hedge the supplemental savings plan liability
|
|
—
|
|
|
561.1
|
|
|
—
|
|
|
561.1
|
|
||||
Total cash and investments in T. Rowe Price products attributable to T. Rowe Price Group
|
|
1,781.8
|
|
|
2,669.6
|
|
|
1,116.7
|
|
|
5,568.1
|
|
||||
Investment in UTI and other investments
|
|
—
|
|
|
270.2
|
|
|
—
|
|
|
270.2
|
|
||||
Total cash and investments attributable to T. Rowe Price Group
|
|
1,781.8
|
|
|
2,939.8
|
|
|
1,116.7
|
|
|
5,838.3
|
|
||||
Redeemable non-controlling interests
|
|
—
|
|
|
—
|
|
|
1,121.0
|
|
|
1,121.0
|
|
||||
As reported on unaudited condensed consolidated balance sheet at December 31, 2019
|
|
$
|
1,781.8
|
|
|
$
|
2,939.8
|
|
|
$
|
2,237.7
|
|
|
$
|
6,959.3
|
|
(in millions)
|
Recurring dividend
|
|
Stock repurchases
|
|
Total cash returned to stockholders
|
||||||
2017
|
$
|
562.6
|
|
|
$
|
458.1
|
|
|
$
|
1,020.7
|
|
2018
|
694.7
|
|
|
1,099.6
|
|
|
1,794.3
|
|
|||
2019
|
733.6
|
|
|
708.8
|
|
|
1,442.4
|
|
|||
Total
|
$
|
1,990.9
|
|
|
$
|
2,266.5
|
|
|
$
|
4,257.4
|
|
|
2019
|
||||||||||||||
|
Cash flow attributable to:
|
|
|
|
|
||||||||||
(in millions)
|
T. Rowe Price Group
|
|
Consolidated T. Rowe Price investment products
|
|
Elims
|
|
As reported
|
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
2,131.3
|
|
|
$
|
258.2
|
|
|
$
|
(140.6
|
)
|
|
$
|
2,248.9
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
|
|
|
|
|
|
|
||||||||
Depreciation, amortization and impairments of property and equipment
|
190.8
|
|
|
—
|
|
|
—
|
|
|
190.8
|
|
||||
Stock-based compensation expense
|
206.6
|
|
|
—
|
|
|
—
|
|
|
206.6
|
|
||||
Net gains recognized on investments
|
(316.9
|
)
|
|
—
|
|
|
140.6
|
|
|
(176.3
|
)
|
||||
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability
|
(126.0
|
)
|
|
—
|
|
|
—
|
|
|
(126.0
|
)
|
||||
Net change in trading securities held by consolidated T. Rowe Price investment products
|
|
|
(930.9
|
)
|
|
—
|
|
|
(930.9
|
)
|
|||||
Other changes in assets and liabilities
|
116.5
|
|
|
1.9
|
|
|
(8.8
|
)
|
|
109.6
|
|
||||
Net cash provided by (used in) operating activities
|
2,202.3
|
|
|
(670.8
|
)
|
|
(8.8
|
)
|
|
1,522.7
|
|
||||
Net cash provided by (used in) investing activities
|
(489.3
|
)
|
|
(18.4
|
)
|
|
183.2
|
|
|
(324.5
|
)
|
||||
Net cash provided by (used in) financing activities
|
(1,356.4
|
)
|
|
698.1
|
|
|
(174.4
|
)
|
|
(832.7
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products
|
—
|
|
|
(2.5
|
)
|
|
—
|
|
|
(2.5
|
)
|
||||
Net change in cash and cash equivalents during period
|
356.6
|
|
|
6.4
|
|
|
—
|
|
|
363.0
|
|
||||
Cash and cash equivalents at beginning of year
|
1,425.2
|
|
|
70.1
|
|
|
—
|
|
|
1,495.3
|
|
||||
Cash and cash equivalents at end of period
|
$
|
1,781.8
|
|
|
$
|
76.5
|
|
|
$
|
—
|
|
|
$
|
1,858.3
|
|
|
2018
|
||||||||||||||
|
Cash flow attributable to:
|
|
|
|
|
||||||||||
(in millions)
|
T. Rowe Price Group
|
|
Consolidated T. Rowe Price investment products
|
|
Elims
|
|
As reported
|
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
1,837.5
|
|
|
$
|
(105.6
|
)
|
|
$
|
36.8
|
|
|
$
|
1,768.7
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
|
|
|
|
|
|
|
||||||||
Depreciation, amortization and impairments of property and equipment
|
159.5
|
|
|
—
|
|
|
—
|
|
|
159.5
|
|
||||
Stock-based compensation expense
|
197.1
|
|
|
—
|
|
|
—
|
|
|
197.1
|
|
||||
Net gains recognized on investments
|
(13.7
|
)
|
|
—
|
|
|
(36.8
|
)
|
|
(50.5
|
)
|
||||
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability
|
(129.5
|
)
|
|
—
|
|
|
—
|
|
|
(129.5
|
)
|
||||
Net change in trading securities held by consolidated T. Rowe Price investment products
|
—
|
|
|
(437.0
|
)
|
|
—
|
|
|
(437.0
|
)
|
||||
Other changes in assets and liabilities
|
127.2
|
|
|
(6.5
|
)
|
|
(9.1
|
)
|
|
111.6
|
|
||||
Net cash provided by (used in) operating activities
|
2,178.1
|
|
|
(549.1
|
)
|
|
(9.1
|
)
|
|
1,619.9
|
|
||||
Net cash provided by (used in) investing activities
|
(945.7
|
)
|
|
(23.8
|
)
|
|
94.0
|
|
|
(875.5
|
)
|
||||
Net cash provided by (used in) financing activities
|
(1,709.9
|
)
|
|
555.3
|
|
|
(84.9
|
)
|
|
(1,239.5
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products
|
—
|
|
|
(15.4
|
)
|
|
—
|
|
|
(15.4
|
)
|
||||
Net change in cash and cash equivalents during period
|
(477.5
|
)
|
|
(33.0
|
)
|
|
—
|
|
|
(510.5
|
)
|
||||
Cash and cash equivalents at beginning of year
|
1,902.7
|
|
|
103.1
|
|
|
—
|
|
|
2,005.8
|
|
||||
Cash and cash equivalents at end of period
|
$
|
1,425.2
|
|
|
$
|
70.1
|
|
|
$
|
—
|
|
|
$
|
1,495.3
|
|
|
2017
|
||||||||||||||
|
Cash flow attributable to:
|
|
|
|
|
||||||||||
(in millions)
|
T. Rowe Price Group
|
|
Consolidated T. Rowe Price investment products
|
|
Elims
|
|
As reported
|
||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
1,497.8
|
|
|
$
|
181.6
|
|
|
$
|
(98.2
|
)
|
|
$
|
1,581.2
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
|
|
|
|
|
|
|
||||||||
Depreciation, amortization and impairments of property and equipment
|
143.6
|
|
|
—
|
|
|
—
|
|
|
143.6
|
|
||||
Stock-based compensation expense
|
152.0
|
|
|
—
|
|
|
—
|
|
|
152.0
|
|
||||
Realized gains on dispositions of available-for-sale T. Rowe Price investment products
|
(83.1
|
)
|
|
—
|
|
|
—
|
|
|
(83.1
|
)
|
||||
Gains recognized upon transfer of an investment in a T. Rowe Price mutual fund from available-for-sale to held as trading
|
(23.6
|
)
|
|
|
|
|
|
(23.6
|
)
|
||||||
Net gains recognized on investments
|
(147.9
|
)
|
|
—
|
|
|
98.2
|
|
|
(49.7
|
)
|
||||
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability
|
(218.6
|
)
|
|
|
|
|
|
(218.6
|
)
|
||||||
Net change in trading securities held by consolidated T. Rowe Price investment products
|
—
|
|
|
(1,492.9
|
)
|
|
—
|
|
|
(1,492.9
|
)
|
||||
Other changes in assets and liabilities
|
231.6
|
|
|
(4.0
|
)
|
|
(7.0
|
)
|
|
220.6
|
|
||||
Net cash provided by (used in) operating activities
|
1,551.8
|
|
|
(1,315.3
|
)
|
|
(7.0
|
)
|
|
229.5
|
|
||||
Net cash provided by (used in) investing activities
|
(33.9
|
)
|
|
(64.2
|
)
|
|
137.1
|
|
|
39.0
|
|
||||
Net cash Provided by (used in) financing activities
|
(820.1
|
)
|
|
1,411.7
|
|
|
(130.1
|
)
|
|
461.5
|
|
||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products
|
—
|
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
||||
Net change in cash and cash equivalents during period
|
697.8
|
|
|
37.5
|
|
|
—
|
|
|
735.3
|
|
||||
Cash and cash equivalents at beginning of year
|
1,204.9
|
|
|
65.6
|
|
|
—
|
|
|
1,270.5
|
|
||||
Cash and cash equivalents at end of period
|
$
|
1,902.7
|
|
|
$
|
103.1
|
|
|
$
|
—
|
|
|
$
|
2,005.8
|
|
|
Total
|
|
2020
|
|
2021-2022
|
|
2023-2024
|
|
Thereafter
|
||||||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Supplemental savings plan liability(1)
|
$
|
563
|
|
|
$
|
7
|
|
|
$
|
88
|
|
|
$
|
103
|
|
|
$
|
365
|
|
Noncancelable operating leases
|
164
|
|
|
27
|
|
|
50
|
|
|
41
|
|
|
46
|
|
|||||
Other purchase commitments(2)
|
320
|
|
|
206
|
|
|
69
|
|
|
24
|
|
|
21
|
|
|||||
Total
|
$
|
1,047
|
|
|
$
|
240
|
|
|
$
|
207
|
|
|
$
|
168
|
|
|
$
|
432
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
(in millions)
|
Fair value 12/31/2019
|
|
Potential lower value
|
|
Potential
loss |
|||||||||
Investments in T. Rowe Price products
|
|
|
|
|
|
|
|
|||||||
Discretionary investments
|
$
|
1,221.8
|
|
|
$
|
1,099.6
|
|
|
$
|
122.2
|
|
|
10
|
%
|
Seed capital not consolidated
|
181.1
|
|
|
157.5
|
|
|
23.6
|
|
|
13
|
%
|
|||
Investments designated as an economic hedge of supplemental savings plan liability
|
561.1
|
|
|
474.4
|
|
|
86.7
|
|
|
15
|
%
|
|||
Total
|
$
|
1,964.0
|
|
|
$
|
1,731.5
|
|
|
$
|
232.5
|
|
|
12
|
%
|
Direct investment in consolidated T. Rowe Price investment products
|
|
|
|
|
|
|
|
|||||||
Discretionary investments
|
$
|
67.8
|
|
|
$
|
58.3
|
|
|
$
|
9.5
|
|
|
14
|
%
|
Seed capital
|
1,048.9
|
|
|
905.3
|
|
|
143.6
|
|
|
14
|
%
|
|||
Total
|
$
|
1,116.7
|
|
|
$
|
963.6
|
|
|
$
|
153.1
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|||||||
Investment partnerships and other investments held at fair value
|
$
|
99.7
|
|
|
$
|
82.6
|
|
|
$
|
17.1
|
|
|
17
|
%
|
Item 8.
|
Financial Statements and Supplementary Data.
|
|
Page
|
Index to Financial Statements:
|
|
Consolidated Balance Sheets at December 31, 2019 and 2018
|
|
Consolidated Statements of Income for each of the years in the three-year period ended December 31, 2019
|
|
Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 2019
|
|
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2019
|
|
Consolidated Statements of Stockholders' Equity for each of the years in the three-year period ended December 31, 2019
|
|
|
12/31/2019
|
|
12/31/2018
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,781.8
|
|
|
$
|
1,425.2
|
|
Accounts receivable and accrued revenue
|
646.6
|
|
|
549.6
|
|
||
Investments
|
2,939.8
|
|
|
2,453.4
|
|
||
Assets of consolidated T. Rowe Price investment products ($1,975.3 million at December 31, 2019 and $1,392.6 million at December 31, 2018, related to variable interest entities)
|
2,276.9
|
|
|
1,680.4
|
|
||
Operating lease assets
|
110.8
|
|
|
—
|
|
||
Property and equipment, net
|
674.4
|
|
|
661.3
|
|
||
Goodwill
|
665.7
|
|
|
665.7
|
|
||
Other assets
|
234.4
|
|
|
253.7
|
|
||
Total assets
|
$
|
9,330.4
|
|
|
$
|
7,689.3
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
214.5
|
|
|
$
|
228.5
|
|
Liabilities of consolidated T. Rowe Price investment products ($27.0 million at December 31, 2019 and $22.7 million at December 31, 2018, related to variable interest entities)
|
39.2
|
|
|
38.7
|
|
||
Operating lease liabilities
|
146.3
|
|
|
—
|
|
||
Accrued compensation and related costs
|
112.1
|
|
|
123.3
|
|
||
Supplemental savings plan liability
|
563.4
|
|
|
380.0
|
|
||
Income taxes payable
|
31.8
|
|
|
54.2
|
|
||
Total liabilities
|
1,107.3
|
|
|
824.7
|
|
||
|
|
|
|
||||
Commitments and contingent liabilities
|
|
|
|
||||
|
|
|
|
||||
Redeemable non-controlling interests
|
1,121.0
|
|
|
740.3
|
|
||
|
|
|
|
||||
STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Preferred stock, undesignated, $.20 par value—authorized and unissued 20,000,000 shares
|
—
|
|
|
—
|
|
||
Common stock, $.20 par value—authorized 750,000,000; issued 235,214,000 shares at December 31, 2019 and 238,069,000 at December 31, 2018
|
47.0
|
|
|
47.6
|
|
||
Additional capital in excess of par value
|
654.6
|
|
|
654.6
|
|
||
Retained earnings
|
6,443.5
|
|
|
5,464.1
|
|
||
Accumulated other comprehensive loss
|
(43.0
|
)
|
|
(42.0
|
)
|
||
Total permanent stockholders' equity
|
7,102.1
|
|
|
6,124.3
|
|
||
Total liabilities, redeemable non-controlling interests and permanent stockholders’ equity
|
$
|
9,330.4
|
|
|
$
|
7,689.3
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
||||||
Investment advisory fees
|
$
|
5,112.5
|
|
|
$
|
4,850.6
|
|
|
$
|
4,295.8
|
|
Administrative, distribution, and servicing fees
|
505.4
|
|
|
522.0
|
|
|
559.1
|
|
|||
Net revenues
|
5,617.9
|
|
|
5,372.6
|
|
|
4,854.9
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses
|
|
|
|
|
|
||||||
Compensation and related costs
|
1,969.2
|
|
|
1,808.6
|
|
|
1,664.9
|
|
|||
Distribution and servicing costs
|
262.5
|
|
|
281.2
|
|
|
262.6
|
|
|||
Advertising and promotion
|
96.8
|
|
|
99.6
|
|
|
92.4
|
|
|||
Product-related costs
|
153.2
|
|
|
157.1
|
|
|
146.0
|
|
|||
Technology, occupancy, and facility costs
|
427.3
|
|
|
383.9
|
|
|
350.5
|
|
|||
General, administrative, and other
|
321.9
|
|
|
296.0
|
|
|
279.7
|
|
|||
Nonrecurring recoveries related to Dell appraisal rights matter
|
—
|
|
|
(15.2
|
)
|
|
(50.0
|
)
|
|||
Total operating expenses
|
3,230.9
|
|
|
3,011.2
|
|
|
2,746.1
|
|
|||
|
|
|
|
|
|
||||||
Net operating income
|
2,387.0
|
|
|
2,361.4
|
|
|
2,108.8
|
|
|||
|
|
|
|
|
|
||||||
Non-operating income
|
|
|
|
|
|
||||||
Net gains on investments
|
260.4
|
|
|
119.2
|
|
|
198.3
|
|
|||
Net gains (losses) on consolidated investment products
|
272.9
|
|
|
(92.9
|
)
|
|
193.9
|
|
|||
Other income (loss)
|
7.0
|
|
|
(3.1
|
)
|
|
4.1
|
|
|||
Total non-operating income
|
540.3
|
|
|
23.2
|
|
|
396.3
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
2,927.3
|
|
|
2,384.6
|
|
|
2,505.1
|
|
|||
Provision for income taxes
|
678.4
|
|
|
615.9
|
|
|
923.9
|
|
|||
Net income
|
2,248.9
|
|
|
1,768.7
|
|
|
1,581.2
|
|
|||
Less: net income (loss) attributable to redeemable non-controlling interests
|
117.6
|
|
|
(68.8
|
)
|
|
83.4
|
|
|||
Net income attributable to T. Rowe Price Group
|
$
|
2,131.3
|
|
|
$
|
1,837.5
|
|
|
$
|
1,497.8
|
|
|
|
|
|
|
|
||||||
Earnings per share on common stock of T. Rowe Price Group
|
|
|
|
|
|
||||||
Basic
|
$
|
8.82
|
|
|
$
|
7.41
|
|
|
$
|
6.07
|
|
Diluted
|
$
|
8.70
|
|
|
$
|
7.27
|
|
|
$
|
5.97
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
2,248.9
|
|
|
$
|
1,768.7
|
|
|
$
|
1,581.2
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Currency translation adjustments:
|
|
|
|
|
|
||||||
Consolidated T. Rowe Price investment products—variable interest entities
|
(3.4
|
)
|
|
(44.7
|
)
|
|
66.4
|
|
|||
Reclassification gains recognized in non-operating investment income upon deconsolidation of certain T. Rowe Price investment products
|
(.1
|
)
|
|
(3.6
|
)
|
|
(.1
|
)
|
|||
Total currency translation adjustments of consolidated T. Rowe Price investment products—variable interest entities
|
(3.5
|
)
|
|
(48.3
|
)
|
|
66.3
|
|
|||
Equity method investments
|
2.4
|
|
|
(15.2
|
)
|
|
2.6
|
|
|||
Total currency translation adjustments
|
(1.1
|
)
|
|
(63.5
|
)
|
|
68.9
|
|
|||
Net unrealized holding gains (losses) on available-for-sale investments
|
—
|
|
|
—
|
|
|
37.4
|
|
|||
Reclassification of (gains) losses in accumulated other comprehensive income to non-operating investment income:
|
|
|
|
|
|
||||||
Capital gain distributions
|
—
|
|
|
—
|
|
|
(3.5
|
)
|
|||
Net gains realized on dispositions determined using average cost
|
—
|
|
|
—
|
|
|
(83.1
|
)
|
|||
Net unrealized gains recognized upon the transfer to trading investments
|
—
|
|
|
—
|
|
|
(23.6
|
)
|
|||
Total reclassification adjustments
|
—
|
|
|
—
|
|
|
(110.2
|
)
|
|||
Total net unrealized holding losses recognized in other comprehensive income
|
—
|
|
|
—
|
|
|
(72.8
|
)
|
|||
|
|
|
|
|
|
||||||
Other comprehensive loss before income taxes
|
(1.1
|
)
|
|
(63.5
|
)
|
|
(3.9
|
)
|
|||
Net deferred tax benefits
|
.5
|
|
|
9.2
|
|
|
10.0
|
|
|||
Total other comprehensive income (loss)
|
(.6
|
)
|
|
(54.3
|
)
|
|
6.1
|
|
|||
Total comprehensive income
|
2,248.3
|
|
|
1,714.4
|
|
|
1,587.3
|
|
|||
Less: comprehensive income (loss) attributable to redeemable non-controlling interests
|
118.0
|
|
|
(94.9
|
)
|
|
104.6
|
|
|||
Comprehensive income attributable to T. Rowe Price Group
|
$
|
2,130.3
|
|
|
$
|
1,809.3
|
|
|
$
|
1,482.7
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
2,248.9
|
|
|
$
|
1,768.7
|
|
|
$
|
1,581.2
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||||||
Depreciation, amortization and impairment of property and equipment
|
190.8
|
|
|
159.5
|
|
|
143.6
|
|
|||
Stock-based compensation expense
|
206.6
|
|
|
197.1
|
|
|
152.0
|
|
|||
Realized gains on dispositions of available-for-sale T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
(83.1
|
)
|
|||
Gains recognized upon transfer of an investment in a T. Rowe Price mutual fund from available-for-sale to held as trading
|
—
|
|
|
—
|
|
|
(23.6
|
)
|
|||
Net gains recognized on other investments
|
(176.3
|
)
|
|
(50.5
|
)
|
|
(49.7
|
)
|
|||
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability
|
(126.0
|
)
|
|
(129.5
|
)
|
|
(218.6
|
)
|
|||
Net change in securities held by consolidated T. Rowe Price investment products
|
(930.9
|
)
|
|
(437.0
|
)
|
|
(1,492.9
|
)
|
|||
Other changes in assets and liabilities
|
109.6
|
|
|
111.6
|
|
|
220.6
|
|
|||
Net cash provided by operating activities
|
1,522.7
|
|
|
1,619.9
|
|
|
229.5
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Purchases of T. Rowe Price investment products
|
(239.7
|
)
|
|
(1,124.0
|
)
|
|
(39.9
|
)
|
|||
Dispositions of T. Rowe Price investment products
|
131.4
|
|
|
352.4
|
|
|
336.6
|
|
|||
Net cash of T. Rowe Price investment products on consolidation (deconsolidation)
|
(18.4
|
)
|
|
(23.8
|
)
|
|
(64.2
|
)
|
|||
Additions to property and equipment
|
(204.6
|
)
|
|
(168.5
|
)
|
|
(186.1
|
)
|
|||
Other investing activity
|
6.8
|
|
|
88.4
|
|
|
(7.4
|
)
|
|||
Net cash provided by (used in) investing activities
|
(324.5
|
)
|
|
(875.5
|
)
|
|
39.0
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Repurchases of common stock
|
(705.8
|
)
|
|
(1,090.4
|
)
|
|
(458.1
|
)
|
|||
Common share issuances under stock-based compensation plans
|
83.3
|
|
|
74.8
|
|
|
201.1
|
|
|||
Dividends paid to common stock and equity-award holders
|
(733.9
|
)
|
|
(694.3
|
)
|
|
(563.1
|
)
|
|||
Net subscriptions received from redeemable non-controlling interest holders
|
523.7
|
|
|
470.4
|
|
|
1,281.6
|
|
|||
Net cash provided by (used in) financing activities
|
(832.7
|
)
|
|
(1,239.5
|
)
|
|
461.5
|
|
|||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products
|
(2.5
|
)
|
|
(15.4
|
)
|
|
5.3
|
|
|||
Net change in cash and cash equivalents during period
|
363.0
|
|
|
(510.5
|
)
|
|
735.3
|
|
|||
Cash and cash equivalents at beginning of period, including $70.1 million at December 31, 2018 and $103.1 million at December 31, 2017 held by consolidated T. Rowe Price investment products
|
1,495.3
|
|
|
2,005.8
|
|
|
1,270.5
|
|
|||
Cash and cash equivalents at end of period, including $76.5 million at December 31, 2019, $70.1 million at December 31, 2018, and $103.1 million at December 31, 2017, held by consolidated T. Rowe Price investment products
|
$
|
1,858.3
|
|
|
$
|
1,495.3
|
|
|
$
|
2,005.8
|
|
|
Common
shares
outstanding
|
|
Common
stock
|
|
Additional
capital in
excess of par value
|
|
Retained
earnings
|
|
AOCI(1)
|
|
Total
stockholders’
equity
|
|
Redeemable non-controlling interests
|
|||||||||||||
Balances at December 31, 2016
|
244,784
|
|
|
$
|
49.0
|
|
|
$
|
654.5
|
|
|
$
|
4,293.6
|
|
|
$
|
11.5
|
|
|
$
|
5,008.6
|
|
|
$
|
687.2
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,497.8
|
|
|
—
|
|
|
1,497.8
|
|
|
83.4
|
|
||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.1
|
)
|
|
(15.1
|
)
|
|
21.2
|
|
||||||
Dividends declared ($2.28 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(562.6
|
)
|
|
—
|
|
|
(562.6
|
)
|
|
—
|
|
||||||
Common stock-based compensation plans activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Shares issued upon option exercises
|
6,339
|
|
|
1.2
|
|
|
251.0
|
|
|
—
|
|
|
—
|
|
|
252.2
|
|
|
—
|
|
||||||
Restricted shares issued, net of shares withheld for taxes
|
(170
|
)
|
|
—
|
|
|
(19.2
|
)
|
|
—
|
|
|
—
|
|
|
(19.2
|
)
|
|
—
|
|
||||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes
|
789
|
|
|
.1
|
|
|
(31.3
|
)
|
|
—
|
|
|
—
|
|
|
(31.2
|
)
|
|
—
|
|
||||||
Forfeiture of restricted awards
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
152.0
|
|
|
—
|
|
|
—
|
|
|
152.0
|
|
|
—
|
|
||||||
Restricted stock units issued as dividend equivalents
|
—
|
|
|
—
|
|
|
.2
|
|
|
(.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common shares repurchased
|
(6,612
|
)
|
|
(1.3
|
)
|
|
(161.1
|
)
|
|
(295.7
|
)
|
|
—
|
|
|
(458.1
|
)
|
|
—
|
|
||||||
Net subscriptions into T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,243.7
|
|
||||||
Net deconsolidations of T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,042.7
|
)
|
||||||
Balances at December 31, 2017
|
245,111
|
|
|
49.0
|
|
|
846.1
|
|
|
4,932.9
|
|
|
(3.6
|
)
|
|
5,824.4
|
|
|
992.8
|
|
||||||
Cumulative effect adjustment upon adoption of new financial instruments and accumulated other comprehensive income guidance on January 1, 2018(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
22.4
|
|
|
(7.9
|
)
|
|
14.5
|
|
|
—
|
|
||||||
Reclassification adjustment of stranded tax benefits on currency translation adjustments upon adoption of new AOCI(1) guidance on January 1, 2018
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
||||||
Balances at January 1, 2018
|
245,111
|
|
|
49.0
|
|
|
846.1
|
|
|
4,957.6
|
|
|
(13.8
|
)
|
|
5,838.9
|
|
|
992.8
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,837.5
|
|
|
—
|
|
|
1,837.5
|
|
|
(68.8
|
)
|
||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28.2
|
)
|
|
(28.2
|
)
|
|
(26.1
|
)
|
||||||
Dividends declared ($2.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(694.7
|
)
|
|
—
|
|
|
(694.7
|
)
|
|
—
|
|
||||||
Common stock-based compensation plans activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Shares issued upon option exercises
|
2,870
|
|
|
.5
|
|
|
120.8
|
|
|
—
|
|
|
—
|
|
|
121.3
|
|
|
—
|
|
||||||
Restricted shares issued, net of shares withheld for taxes
|
(115
|
)
|
|
—
|
|
|
(11.4
|
)
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|
—
|
|
||||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes
|
1,053
|
|
|
.2
|
|
|
(36.8
|
)
|
|
—
|
|
|
—
|
|
|
(36.6
|
)
|
|
—
|
|
||||||
Forfeiture of restricted awards
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
197.1
|
|
|
—
|
|
|
—
|
|
|
197.1
|
|
|
—
|
|
||||||
Restricted stock units issued as dividend equivalents
|
—
|
|
|
—
|
|
|
.2
|
|
|
(.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common shares repurchased
|
(10,836
|
)
|
|
(2.1
|
)
|
|
(461.4
|
)
|
|
(636.1
|
)
|
|
—
|
|
|
(1,099.6
|
)
|
|
—
|
|
||||||
Net subscriptions into T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
468.8
|
|
||||||
Net deconsolidations of T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(626.4
|
)
|
||||||
Balances at December 31, 2018
|
238,069
|
|
|
$
|
47.6
|
|
|
$
|
654.6
|
|
|
$
|
5,464.1
|
|
|
$
|
(42.0
|
)
|
|
$
|
6,124.3
|
|
|
$
|
740.3
|
|
|
Common
shares
outstanding
|
|
Common
stock
|
|
Additional
capital in
excess of par
value
|
|
Retained
earnings
|
|
AOCI(1)
|
|
Total
stockholders’
equity
|
|
Redeemable non-controlling interests
|
|||||||||||||
Balances at December 31, 2018
|
238,069
|
|
|
$
|
47.6
|
|
|
$
|
654.6
|
|
|
$
|
5,464.1
|
|
|
$
|
(42.0
|
)
|
|
$
|
6,124.3
|
|
|
$
|
740.3
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,131.3
|
|
|
—
|
|
|
2,131.3
|
|
|
117.6
|
|
||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
.4
|
|
||||||
Dividends declared ($3.04 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(733.6
|
)
|
|
—
|
|
|
(733.6
|
)
|
|
—
|
|
||||||
Common stock-based compensation plans activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Shares issued upon option exercises
|
2,924
|
|
|
.6
|
|
|
147.9
|
|
|
—
|
|
|
—
|
|
|
148.5
|
|
|
—
|
|
||||||
Restricted shares withheld for taxes, net of shares issued
|
(41
|
)
|
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
||||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes
|
1,245
|
|
|
.2
|
|
|
(59.5
|
)
|
|
—
|
|
|
—
|
|
|
(59.3
|
)
|
|
—
|
|
||||||
Forfeiture of restricted awards
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
206.6
|
|
|
—
|
|
|
—
|
|
|
206.6
|
|
|
—
|
|
||||||
Restricted stock units issued as dividend equivalents
|
—
|
|
|
—
|
|
|
.2
|
|
|
(.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common shares repurchased
|
(6,973
|
)
|
|
(1.4
|
)
|
|
(289.3
|
)
|
|
(418.1
|
)
|
|
—
|
|
|
(708.8
|
)
|
|
—
|
|
||||||
Net subscriptions into T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
530.3
|
|
||||||
Net deconsolidations of T. Rowe Price investment products
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(267.6
|
)
|
||||||
Balances at December 31, 2019
|
235,214
|
|
|
$
|
47.0
|
|
|
$
|
654.6
|
|
|
$
|
6,443.5
|
|
|
$
|
(43.0
|
)
|
|
$
|
7,102.1
|
|
|
$
|
1,121.0
|
|
|
2019
|
||||||||||||||
|
Administrative, distribution, and servicing fees
|
||||||||||||||
(in millions)
|
Investment advisory fees
|
|
Administrative fees
|
|
Distribution and servicing fees
|
|
Net revenues
|
||||||||
U.S. mutual funds
|
$
|
3,452.5
|
|
|
$
|
281.8
|
|
|
$
|
120.0
|
|
|
$
|
3,854.3
|
|
Subadvised and separate accounts and other investment products
|
1,660.0
|
|
|
—
|
|
|
—
|
|
|
1,660.0
|
|
||||
Other clients
|
—
|
|
|
103.6
|
|
|
—
|
|
|
103.6
|
|
||||
|
$
|
5,112.5
|
|
|
$
|
385.4
|
|
|
$
|
120.0
|
|
|
$
|
5,617.9
|
|
|
|
|
|
|
|
|
|
||||||||
|
2018
|
||||||||||||||
|
Administrative, distribution, and servicing fees
|
||||||||||||||
(in millions)
|
Investment advisory fees
|
|
Administrative fees
|
|
Distribution and servicing fees
|
|
Net revenues
|
||||||||
U.S. mutual funds
|
$
|
3,375.0
|
|
|
$
|
302.2
|
|
|
$
|
138.0
|
|
|
$
|
3,815.2
|
|
Subadvised and separate accounts and other investment products
|
1,475.6
|
|
|
—
|
|
|
—
|
|
|
1,475.6
|
|
||||
Other clients
|
—
|
|
|
81.8
|
|
|
—
|
|
|
81.8
|
|
||||
|
$
|
4,850.6
|
|
|
$
|
384.0
|
|
|
$
|
138.0
|
|
|
$
|
5,372.6
|
|
|
|
|
|
|
|
|
|
||||||||
|
2017
|
||||||||||||||
|
Administrative, distribution, and servicing fees
|
||||||||||||||
(in millions)
|
Investment Advisory Fees
|
|
Administrative Fees
|
|
Distribution and servicing fees
|
|
Net Revenues
|
||||||||
U.S. mutual funds
|
$
|
3,080.0
|
|
|
$
|
333.6
|
|
|
$
|
147.0
|
|
|
$
|
3,560.6
|
|
Subadvised and separate accounts and other investment products
|
1,215.8
|
|
|
—
|
|
|
—
|
|
|
1,215.8
|
|
||||
Other clients
|
—
|
|
|
78.5
|
|
|
—
|
|
|
78.5
|
|
||||
|
$
|
4,295.8
|
|
|
$
|
412.1
|
|
|
$
|
147.0
|
|
|
$
|
4,854.9
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
U.S. mutual funds
|
|
|
|
|
|
||||||
Equity and blended assets
|
$
|
2,952.2
|
|
|
$
|
2,858.1
|
|
|
$
|
2,571.7
|
|
Fixed income, including money market
|
500.3
|
|
|
516.9
|
|
|
508.3
|
|
|||
|
3,452.5
|
|
|
3,375.0
|
|
|
3,080.0
|
|
|||
Subadvised and separate accounts and other investment products
|
|
|
|
|
|
||||||
Equity and blended assets
|
1,405.0
|
|
|
1,236.8
|
|
|
1,009.4
|
|
|||
Fixed income, including money market
|
255.0
|
|
|
238.8
|
|
|
206.4
|
|
|||
|
1,660.0
|
|
|
1,475.6
|
|
|
1,215.8
|
|
|||
Total
|
$
|
5,112.5
|
|
|
$
|
4,850.6
|
|
|
$
|
4,295.8
|
|
(in billions)
|
Average during
|
|
As of December 31,
|
||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
||||||||||
U.S. mutual funds
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity and blended assets
|
$
|
513.6
|
|
|
$
|
493.6
|
|
|
$
|
447.5
|
|
|
$
|
552.4
|
|
|
$
|
441.1
|
|
Fixed income, including money market
|
126.8
|
|
|
128.2
|
|
|
121.0
|
|
|
130.3
|
|
|
123.4
|
|
|||||
|
640.4
|
|
|
621.8
|
|
|
568.5
|
|
|
682.7
|
|
|
564.5
|
|
|||||
Subadvised and separate accounts and other investment products
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity and blended assets
|
362.5
|
|
|
317.3
|
|
|
256.4
|
|
|
412.1
|
|
|
299.2
|
|
|||||
Fixed income, including money market
|
106.4
|
|
|
97.4
|
|
|
84.1
|
|
|
112.0
|
|
|
98.6
|
|
|||||
|
468.9
|
|
|
414.7
|
|
|
340.5
|
|
|
524.1
|
|
|
397.8
|
|
|||||
Total
|
$
|
1,109.3
|
|
|
$
|
1,036.5
|
|
|
$
|
909.0
|
|
|
$
|
1,206.8
|
|
|
$
|
962.3
|
|
(in millions)
|
12/31/2019
|
|
12/31/2018
|
||||
Investments held at fair value
|
|
|
|
||||
T. Rowe Price investment products
|
$
|
1,402.9
|
|
|
$
|
1,538.4
|
|
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability
|
561.1
|
|
|
381.3
|
|
||
Investment partnerships and other investments
|
99.7
|
|
|
99.6
|
|
||
Equity method investments
|
|
|
|
||||
T. Rowe Price investment products
|
705.6
|
|
|
276.2
|
|
||
26% interest in UTI Asset Management Company Limited (India)
|
164.5
|
|
|
152.4
|
|
||
Investment partnerships and other investments
|
5.0
|
|
|
4.5
|
|
||
U.S. Treasury note
|
1.0
|
|
|
1.0
|
|
||
Total
|
$
|
2,939.8
|
|
|
$
|
2,453.4
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net increase (decrease) in assets of consolidated T. Rowe Price investment products
|
$
|
(380.5
|
)
|
|
$
|
(736.6
|
)
|
|
$
|
(1,397.2
|
)
|
Net increase (decrease) in liabilities of consolidated
T. Rowe Price investment products |
$
|
(15.0
|
)
|
|
$
|
17.6
|
|
|
$
|
(153.1
|
)
|
Net decrease in redeemable non-controlling interests
|
$
|
(267.6
|
)
|
|
$
|
(626.4
|
)
|
|
$
|
(1,042.6
|
)
|
|
|
|
|
|
|
||||||
Gains recognized upon deconsolidation
|
$
|
.1
|
|
|
$
|
3.6
|
|
|
$
|
.1
|
|
(in millions)
|
2019
|
|
2018
|
||||
Investment carrying values
|
$
|
156.0
|
|
|
$
|
143.3
|
|
Unfunded capital commitments
|
18.1
|
|
|
27.3
|
|
||
Uncollected investment advisory and administrative fees
|
10.5
|
|
|
5.2
|
|
||
|
$
|
184.6
|
|
|
$
|
175.8
|
|
|
securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data
|
|
12/31/2019
|
|
12/31/2018
|
||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 1
|
|
Level 2
|
||||||||
Cash equivalents held in T. Rowe Price money market funds
|
$
|
1,355.6
|
|
|
$
|
—
|
|
|
$
|
1,196.0
|
|
|
$
|
—
|
|
T. Rowe Price investment products
|
1,954.1
|
|
|
9.9
|
|
|
1,900.5
|
|
|
19.2
|
|
||||
Total
|
$
|
3,309.7
|
|
|
$
|
9.9
|
|
|
$
|
3,096.5
|
|
|
$
|
19.2
|
|
|
12/31/2019
|
|
12/31/2018
|
||||||||||||||||||||
(in millions)
|
VOE
|
|
VIE
|
|
Total
|
|
VOE
|
|
VIE
|
|
Total
|
||||||||||||
Cash and cash equivalents(1)
|
$
|
9.9
|
|
|
$
|
66.6
|
|
|
$
|
76.5
|
|
|
$
|
18.5
|
|
|
$
|
51.6
|
|
|
$
|
70.1
|
|
Investments(2)
|
281.1
|
|
|
1,891.3
|
|
|
2,172.4
|
|
|
261.3
|
|
|
1,322.7
|
|
|
1,584.0
|
|
||||||
Other assets
|
10.6
|
|
|
17.4
|
|
|
28.0
|
|
|
8.0
|
|
|
18.3
|
|
|
26.3
|
|
||||||
Total assets
|
301.6
|
|
|
1,975.3
|
|
|
2,276.9
|
|
|
287.8
|
|
|
1,392.6
|
|
|
1,680.4
|
|
||||||
Liabilities
|
12.2
|
|
|
27.0
|
|
|
39.2
|
|
|
16.0
|
|
|
22.7
|
|
|
38.7
|
|
||||||
Net assets
|
$
|
289.4
|
|
|
$
|
1,948.3
|
|
|
$
|
2,237.7
|
|
|
$
|
271.8
|
|
|
$
|
1,369.9
|
|
|
$
|
1,641.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Attributable to T. Rowe Price Group
|
$
|
199.6
|
|
|
$
|
917.1
|
|
|
$
|
1,116.7
|
|
|
$
|
175.3
|
|
|
$
|
726.1
|
|
|
$
|
901.4
|
|
Attributable to redeemable non-controlling interests
|
89.8
|
|
|
1,031.2
|
|
|
1,121.0
|
|
|
96.5
|
|
|
643.8
|
|
|
740.3
|
|
||||||
|
$
|
289.4
|
|
|
$
|
1,948.3
|
|
|
$
|
2,237.7
|
|
|
$
|
271.8
|
|
|
$
|
1,369.9
|
|
|
$
|
1,641.7
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
(in millions)
|
VOE
|
|
VIE
|
|
Total
|
|
VOE
|
|
VIE
|
|
Total
|
|
VOE
|
|
VIE
|
|
Total
|
||||||||||||||||||
Operating expenses reflected in net operating income
|
$
|
(2.2
|
)
|
|
$
|
(12.5
|
)
|
|
$
|
(14.7
|
)
|
|
$
|
(1.9
|
)
|
|
$
|
(10.8
|
)
|
|
$
|
(12.7
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(11.2
|
)
|
|
$
|
(12.3
|
)
|
Net gains (losses) reflected in non-operating income
|
31.0
|
|
|
241.9
|
|
|
272.9
|
|
|
(16.7
|
)
|
|
(76.2
|
)
|
|
(92.9
|
)
|
|
18.8
|
|
|
175.1
|
|
|
193.9
|
|
|||||||||
Impact on income before taxes
|
$
|
28.8
|
|
|
$
|
229.4
|
|
|
$
|
258.2
|
|
|
$
|
(18.6
|
)
|
|
$
|
(87.0
|
)
|
|
$
|
(105.6
|
)
|
|
$
|
17.7
|
|
|
$
|
163.9
|
|
|
$
|
181.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income (loss) attributable to T. Rowe Price Group
|
$
|
21.3
|
|
|
$
|
119.3
|
|
|
$
|
140.6
|
|
|
$
|
(6.3
|
)
|
|
$
|
(30.5
|
)
|
|
$
|
(36.8
|
)
|
|
$
|
13.3
|
|
|
$
|
84.9
|
|
|
$
|
98.2
|
|
Net income (loss) attributable to redeemable non-controlling interests
|
7.5
|
|
|
110.1
|
|
|
117.6
|
|
|
(12.3
|
)
|
|
(56.5
|
)
|
|
(68.8
|
)
|
|
4.4
|
|
|
79.0
|
|
|
83.4
|
|
|||||||||
|
$
|
28.8
|
|
|
$
|
229.4
|
|
|
$
|
258.2
|
|
|
$
|
(18.6
|
)
|
|
$
|
(87.0
|
)
|
|
$
|
(105.6
|
)
|
|
$
|
17.7
|
|
|
$
|
163.9
|
|
|
$
|
181.6
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
(in millions)
|
VOE
|
|
VIE
|
|
Total
|
|
VOE
|
|
VIE
|
|
Total
|
|
VOE
|
|
VIE
|
|
Total
|
||||||||||||||||||
Net cash provided by operating activities
|
$
|
(7.2
|
)
|
|
$
|
(663.6
|
)
|
|
$
|
(670.8
|
)
|
|
$
|
(43.9
|
)
|
|
$
|
(505.2
|
)
|
|
$
|
(549.1
|
)
|
|
$
|
(33.0
|
)
|
|
$
|
(1,282.3
|
)
|
|
$
|
(1,315.3
|
)
|
Net cash used in investing activities
|
(7.1
|
)
|
|
(11.3
|
)
|
|
(18.4
|
)
|
|
(.8
|
)
|
|
(23.0
|
)
|
|
(23.8
|
)
|
|
(9.0
|
)
|
|
(55.2
|
)
|
|
(64.2
|
)
|
|||||||||
Net cash used in financing activities
|
5.7
|
|
|
692.4
|
|
|
698.1
|
|
|
56.1
|
|
|
499.2
|
|
|
555.3
|
|
|
38.8
|
|
|
1,372.9
|
|
|
1,411.7
|
|
|||||||||
FX impact on cash
|
—
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
(15.4
|
)
|
|
(15.4
|
)
|
|
—
|
|
|
5.3
|
|
|
5.3
|
|
|||||||||
Net change in cash and cash equivalents during period
|
(8.6
|
)
|
|
15.0
|
|
|
6.4
|
|
|
11.4
|
|
|
(44.4
|
)
|
|
(33.0
|
)
|
|
(3.2
|
)
|
|
40.7
|
|
|
37.5
|
|
|||||||||
Cash and cash equivalents at beginning of year
|
18.5
|
|
|
51.6
|
|
|
70.1
|
|
|
7.1
|
|
|
96.0
|
|
|
103.1
|
|
|
10.3
|
|
|
55.3
|
|
|
65.6
|
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
9.9
|
|
|
$
|
66.6
|
|
|
$
|
76.5
|
|
|
$
|
18.5
|
|
|
$
|
51.6
|
|
|
$
|
70.1
|
|
|
$
|
7.1
|
|
|
$
|
96.0
|
|
|
$
|
103.1
|
|
|
12/31/2019
|
|
12/31/2018
|
||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 1
|
|
Level 2
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
9.1
|
|
|
$
|
1.1
|
|
|
$
|
19.3
|
|
|
$
|
—
|
|
Equity securities
|
162.8
|
|
|
724.5
|
|
|
189.6
|
|
|
483.5
|
|
||||
Fixed income securities
|
—
|
|
|
1,248.6
|
|
|
—
|
|
|
890.2
|
|
||||
Other investments
|
2.7
|
|
|
33.8
|
|
|
1.7
|
|
|
19.0
|
|
||||
|
$
|
174.6
|
|
|
$
|
2,008.0
|
|
|
$
|
210.6
|
|
|
$
|
1,392.7
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
$
|
(.4
|
)
|
|
$
|
(11.2
|
)
|
|
$
|
(.8
|
)
|
|
$
|
(12.8
|
)
|
(in millions)
|
12/31/2019
|
||
2020
|
$
|
26.6
|
|
2021
|
26.7
|
|
|
2022
|
23.8
|
|
|
2023
|
21.1
|
|
|
2024
|
19.6
|
|
|
Thereafter
|
46.6
|
|
|
Total future undiscounted cash flows
|
164.4
|
|
|
Less: imputed interest to be recognized in lease expense
|
(18.1
|
)
|
|
Operating lease liabilities, as reported
|
$
|
146.3
|
|
(in millions)
|
2019
|
|
2018
|
||||
Computer and communications software and equipment
|
$
|
963.8
|
|
|
$
|
864.7
|
|
Buildings and improvements
|
466.1
|
|
|
454.5
|
|
||
Leasehold improvements
|
157.3
|
|
|
137.0
|
|
||
Furniture and other equipment
|
193.5
|
|
|
178.9
|
|
||
Land
|
33.4
|
|
|
37.4
|
|
||
Leased land
|
2.7
|
|
|
2.7
|
|
||
|
1,816.8
|
|
|
1,675.2
|
|
||
Less accumulated depreciation and amortization
|
1,142.4
|
|
|
1,013.9
|
|
||
Total
|
$
|
674.4
|
|
|
$
|
661.3
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Current income taxes
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
490.9
|
|
|
$
|
484.2
|
|
|
$
|
708.1
|
|
State and local
|
135.9
|
|
|
138.7
|
|
|
131.0
|
|
|||
Foreign
|
18.3
|
|
|
28.5
|
|
|
13.1
|
|
|||
Deferred income taxes (benefits)
|
33.3
|
|
|
(35.5
|
)
|
|
71.7
|
|
|||
Total
|
$
|
678.4
|
|
|
$
|
615.9
|
|
|
$
|
923.9
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Property and equipment
|
$
|
3.0
|
|
|
$
|
11.0
|
|
|
$
|
(3.9
|
)
|
Operating lease assets
|
(33.9
|
)
|
|
—
|
|
|
—
|
|
|||
Operating lease liabilities
|
33.9
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
4.5
|
|
|
7.1
|
|
|
72.4
|
|
|||
Accrued compensation
|
1.3
|
|
|
(2.2
|
)
|
|
1.2
|
|
|||
Supplemental savings plan liability
|
(33.6
|
)
|
|
(17.4
|
)
|
|
(8.3
|
)
|
|||
Asset impairments
|
(2.4
|
)
|
|
.9
|
|
|
7.3
|
|
|||
Unrealized holding gains recognized in non-operating income
|
63.0
|
|
|
(32.0
|
)
|
|
10.7
|
|
|||
Other
|
(2.5
|
)
|
|
(2.9
|
)
|
|
(7.7
|
)
|
|||
Total deferred income taxes (benefits)
|
$
|
33.3
|
|
|
$
|
(35.5
|
)
|
|
$
|
71.7
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Statutory U.S. federal income tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Impact of nonrecurring charge relating to U.S. tax reform
|
—
|
|
|
.8
|
|
|
2.9
|
|
Impact of nonrecurring charge related to Maryland state tax legislation
|
—
|
|
|
.3
|
|
|
—
|
|
State income taxes for current year, net of federal income tax benefits(1)
|
4.3
|
|
|
4.6
|
|
|
3.9
|
|
Net income attributable to redeemable non-controlling interests
|
(1.0
|
)
|
|
.7
|
|
|
(1.3
|
)
|
Net excess tax benefits from stock-based compensation plans activity
|
(1.5
|
)
|
|
(1.7
|
)
|
|
(3.0
|
)
|
Other items
|
.4
|
|
|
.1
|
|
|
(.6
|
)
|
Effective income tax rate
|
23.2
|
%
|
|
25.8
|
%
|
|
36.9
|
%
|
(in millions)
|
2019
|
|
2018
|
||||
Deferred tax liabilities
|
|
|
|
||||
Property and equipment
|
$
|
(49.3
|
)
|
|
$
|
(46.3
|
)
|
Operating lease assets
|
(33.9
|
)
|
|
—
|
|
||
Net unrealized holding gains recognized in income
|
(93.1
|
)
|
|
(30.1
|
)
|
||
Other
|
(22.1
|
)
|
|
(20.4
|
)
|
||
|
(198.4
|
)
|
|
(96.8
|
)
|
||
Deferred tax assets
|
|
|
|
||||
Stock-based compensation
|
81.1
|
|
|
85.6
|
|
||
Asset impairments
|
10.3
|
|
|
7.9
|
|
||
Operating lease liabilities
|
33.9
|
|
|
—
|
|
||
Accrued compensation
|
5.3
|
|
|
6.6
|
|
||
Supplemental savings plan
|
117.6
|
|
|
84.0
|
|
||
Currency translation adjustment
|
11.9
|
|
|
11.4
|
|
||
Other
|
15.4
|
|
|
11.2
|
|
||
|
275.5
|
|
|
206.7
|
|
||
Net deferred tax asset
|
$
|
77.1
|
|
|
$
|
109.9
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
$
|
16.1
|
|
|
$
|
7.6
|
|
|
$
|
6.2
|
|
Changes in tax positions related to
|
|
|
|
|
|
||||||
Current year
|
8.1
|
|
|
5.8
|
|
|
1.5
|
|
|||
Prior years
|
.5
|
|
|
3.8
|
|
|
.1
|
|
|||
Expired statute of limitations
|
(.8
|
)
|
|
(1.1
|
)
|
|
(.2
|
)
|
|||
Balance at end of year
|
$
|
23.9
|
|
|
$
|
16.1
|
|
|
$
|
7.6
|
|
|
Options
|
|
Weighted-
average
exercise
price
|
|
Weighted-average
remaining
contractual
term in
years
|
|||
Outstanding at December 31, 2018
|
11,300,393
|
|
|
$
|
69.05
|
|
|
|
Exercised
|
(3,787,735
|
)
|
|
$
|
64.92
|
|
|
|
Forfeited
|
(116,751
|
)
|
|
$
|
76.69
|
|
|
|
Expired
|
(7,839
|
)
|
|
$
|
59.03
|
|
|
|
Outstanding at December 31, 2019
|
7,388,068
|
|
|
$
|
71.06
|
|
|
3.8
|
Exercisable at December 31, 2019
|
6,716,511
|
|
|
$
|
70.58
|
|
|
3.7
|
|
Restricted
shares
|
|
Restricted
stock
units
|
|
Weighted-
average
fair value
|
||||
Nonvested at December 31, 2018
|
136,964
|
|
|
6,603,920
|
|
|
$
|
87.07
|
|
Time-based grants
|
7,404
|
|
|
2,120,284
|
|
|
$
|
120.22
|
|
Performance-based grants
|
—
|
|
|
84,240
|
|
|
$
|
120.79
|
|
Vested (value at vest date was $227.1 million)
|
(126,885
|
)
|
|
(1,741,795
|
)
|
|
$
|
84.18
|
|
Nonvested dividend equivalents granted to non-employee directors
|
—
|
|
|
1,808
|
|
|
$
|
111.26
|
|
Forfeited
|
(10,079
|
)
|
|
(350,196
|
)
|
|
$
|
87.84
|
|
Nonvested at December 31, 2019
|
7,404
|
|
|
6,718,261
|
|
|
$
|
98.75
|
|
(in millions)
|
|
||
First quarter 2020
|
$
|
59.6
|
|
Second quarter 2020
|
54.5
|
|
|
Third quarter 2020
|
53.2
|
|
|
Fourth quarter 2020
|
46.3
|
|
|
Total 2020
|
213.6
|
|
|
2021 through 2025
|
198.0
|
|
|
Total
|
$
|
411.6
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income attributable to T. Rowe Price Group
|
$
|
2,131.3
|
|
|
$
|
1,837.5
|
|
|
$
|
1,497.8
|
|
Less: net income allocated to outstanding restricted stock and stock unit holders
|
55.3
|
|
|
43.6
|
|
|
33.9
|
|
|||
Net income allocated to common stockholders
|
$
|
2,076.0
|
|
|
$
|
1,793.9
|
|
|
$
|
1,463.9
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares
|
|
|
|
|
|
||||||
Outstanding
|
235.4
|
|
|
242.2
|
|
|
241.2
|
|
|||
Outstanding assuming dilution
|
238.6
|
|
|
246.9
|
|
|
245.1
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
|||
Weighted-average outstanding stock options excluded
|
—
|
|
|
—
|
|
|
5.0
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net deferred tax benefits (income taxes) on:
|
|
|
|
|
|
||||||
Currency translation adjustments
|
$
|
.5
|
|
|
$
|
8.3
|
|
|
$
|
(18.5
|
)
|
Reclassification adjustment recognized in the provision for income taxes upon deconsolidation of T. Rowe Price investment product
|
—
|
|
|
.9
|
|
|
—
|
|
|||
Total deferred tax benefits (income taxes) on currency translation adjustments
|
.5
|
|
|
9.2
|
|
|
(18.5
|
)
|
|||
Net unrealized holding gains or losses(1)
|
—
|
|
|
—
|
|
|
(14.6
|
)
|
|||
Reclassification adjustments recognized in the provision for income taxes:
|
|
|
|
|
|
||||||
Capital gain distributions
|
—
|
|
|
—
|
|
|
1.4
|
|
|||
Net gains realized on dispositions
|
—
|
|
|
—
|
|
|
32.5
|
|
|||
Net gains recognized upon transfer to trading investments
|
—
|
|
|
—
|
|
|
9.2
|
|
|||
Net deferred tax benefits (income taxes) on net unrealized holding gains or losses
|
—
|
|
|
—
|
|
|
28.5
|
|
|||
Total net deferred tax benefits
|
$
|
.5
|
|
|
$
|
9.2
|
|
|
$
|
10.0
|
|
|
|
Currency translation adjustments
|
|
|
|
|
||||||||||||||
(in millions)
|
|
Equity method investments
|
|
Consolidated T. Rowe Price investment products - variable interest entities
|
|
Total currency translation adjustments
|
|
Net unrealized holding gains
|
|
Total
|
||||||||||
Balances at December 31, 2016
|
|
$
|
(32.3
|
)
|
|
$
|
(8.4
|
)
|
|
$
|
(40.7
|
)
|
|
$
|
52.2
|
|
|
$
|
11.5
|
|
Other comprehensive income (loss) before reclassifications and income taxes
|
|
2.6
|
|
|
45.2
|
|
|
47.8
|
|
|
37.4
|
|
|
85.2
|
|
|||||
Reclassification adjustments recognized in non-operating income
|
|
—
|
|
|
(.1
|
)
|
|
(.1
|
)
|
|
(110.2
|
)
|
|
(110.3
|
)
|
|||||
|
|
2.6
|
|
|
45.1
|
|
|
47.7
|
|
|
(72.8
|
)
|
|
(25.1
|
)
|
|||||
Net deferred tax benefits (income taxes)
|
|
(.9
|
)
|
|
(17.6
|
)
|
|
(18.5
|
)
|
|
28.5
|
|
|
10.0
|
|
|||||
Other comprehensive income (loss)
|
|
1.7
|
|
|
27.5
|
|
|
29.2
|
|
|
(44.3
|
)
|
|
(15.1
|
)
|
|||||
Balances at December 31, 2017
|
|
(30.6
|
)
|
|
19.1
|
|
|
(11.5
|
)
|
|
7.9
|
|
|
(3.6
|
)
|
|||||
Reclassification of unrealized holding gains to retained earnings upon adoption of new financial instruments guidance(1)(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.9
|
)
|
|
(7.9
|
)
|
|||||
Reclassification adjustment of stranded tax benefits on currency translation adjustments upon adoption of new accumulated other comprehensive income guidance
|
|
(6.4
|
)
|
|
4.1
|
|
|
(2.3
|
)
|
|
—
|
|
|
(2.3
|
)
|
|||||
Balance at January 1, 2018
|
|
(37.0
|
)
|
|
23.2
|
|
|
(13.8
|
)
|
|
—
|
|
|
(13.8
|
)
|
|||||
Other comprehensive income (loss) before reclassifications and income taxes
|
|
(15.2
|
)
|
|
(18.6
|
)
|
|
(33.8
|
)
|
|
—
|
|
|
(33.8
|
)
|
|||||
Reclassification adjustments recognized in non-operating income
|
|
—
|
|
|
(3.6
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
(3.6
|
)
|
|||||
|
|
(15.2
|
)
|
|
(22.2
|
)
|
|
(37.4
|
)
|
|
—
|
|
|
(37.4
|
)
|
|||||
Net deferred tax benefits (income taxes)
|
|
3.4
|
|
|
5.8
|
|
|
9.2
|
|
|
—
|
|
|
9.2
|
|
|||||
Other comprehensive income (loss)
|
|
(11.8
|
)
|
|
(16.4
|
)
|
|
(28.2
|
)
|
|
—
|
|
|
(28.2
|
)
|
|||||
Balances at December 31, 2018
|
|
(48.8
|
)
|
|
6.8
|
|
|
(42.0
|
)
|
|
—
|
|
|
(42.0
|
)
|
|||||
Other comprehensive income (loss) before reclassifications and income taxes
|
|
2.4
|
|
|
(3.8
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
(1.4
|
)
|
|||||
Reclassification adjustments recognized in non-operating income
|
|
—
|
|
|
(.1
|
)
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
|||||
|
|
2.4
|
|
|
(3.9
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|||||
Net deferred tax benefits (income taxes)
|
|
(.5
|
)
|
|
1.0
|
|
|
.5
|
|
|
—
|
|
|
.5
|
|
|||||
Other comprehensive income (loss)
|
|
1.9
|
|
|
(2.9
|
)
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|||||
Balances at December 31, 2019
|
|
$
|
(46.9
|
)
|
|
$
|
3.9
|
|
|
$
|
(43.0
|
)
|
|
$
|
—
|
|
|
$
|
(43.0
|
)
|
|
Net revenues
|
|
Net income(1)(2)(3)
|
|
Net income attributable to
T. Rowe Price Group(1)(2)(3)
|
|
Basic earnings on common stock(1)(2)(3)(4)
|
|
Diluted earnings on common stock(1)(2)(3)(4)
|
||||||||||
|
(in millions)
|
|
(per share)
|
||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
||||||||||
1st quarter
|
$
|
1,327.3
|
|
|
$
|
554.0
|
|
|
$
|
512.6
|
|
|
$
|
2.11
|
|
|
$
|
2.09
|
|
2nd quarter
|
$
|
1,395.2
|
|
|
$
|
555.9
|
|
|
$
|
527.5
|
|
|
$
|
2.18
|
|
|
$
|
2.15
|
|
3rd quarter
|
$
|
1,426.7
|
|
|
$
|
545.1
|
|
|
$
|
545.9
|
|
|
$
|
2.26
|
|
|
$
|
2.23
|
|
4th quarter
|
$
|
1,468.7
|
|
|
$
|
593.9
|
|
|
$
|
545.3
|
|
|
$
|
2.27
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
||||||||||
1st quarter
|
$
|
1,328.0
|
|
|
$
|
455.5
|
|
|
$
|
453.7
|
|
|
$
|
1.81
|
|
|
$
|
1.77
|
|
2nd quarter
|
$
|
1,345.0
|
|
|
$
|
459.6
|
|
|
$
|
448.9
|
|
|
$
|
1.81
|
|
|
$
|
1.77
|
|
3rd quarter
|
$
|
1,394.6
|
|
|
$
|
581.6
|
|
|
$
|
583.0
|
|
|
$
|
2.34
|
|
|
$
|
2.30
|
|
4th quarter
|
$
|
1,305.0
|
|
|
$
|
272.0
|
|
|
$
|
351.9
|
|
|
$
|
1.43
|
|
|
$
|
1.41
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accountant Fees and Services.
|
Item 15.
|
Exhibits, Financial Statement Schedules.
|
|
|
|
|
|
10.01.3
|
|
|
|
|
|
|
|
10.02
|
|
|
|
|
|
|
|
10.03
|
|
|
|
|
|
|
|
10.04
|
|
|
|
|
|
|
|
10.05
|
|
|
|
|
|
|
|
10.08
|
*
|
|
|
|
|
|
|
10.08.1
|
*
|
|
|
|
|
|
|
10.10
|
*
|
|
|
|
|
|
|
10.13.1
|
*
|
|
|
|
|
|
|
10.13.2
|
*
|
|
|
|
|
|
|
10.13.3
|
*
|
|
|
|
|
|
|
10.14.1
|
*
|
|
|
|
|
|
|
10.14.2
|
*
|
|
|
|
|
|
|
10.14.3
|
*
|
|
|
|
|
|
|
10.15
|
*
|
|
|
|
|
|
|
10.15.1
|
*
|
|
|
|
|
|
|
10.15.2
|
*
|
|
|
|
|
|
|
10.15.3
|
*
|
|
|
|
|
|
|
10.15.4
|
*
|
|
|
|
|
|
|
10.16
|
*
|
|
|
|
|
|
|
10.17
|
|
|
|
|
|
|
|
10.18.1
|
*
|
|
|
|
|
|
|
10.18.2
|
*
|
|
|
|
|
|
|
10.18.3
|
*
|
|
|
|
|
|
|
10.18.4
|
*
|
|
|
|
|
|
|
10.18.5
|
*
|
|
|
|
|
|
|
10.18.6
|
*
|
|
|
|
|
|
|
10.18.7
|
*
|
|
|
|
|
|
|
10.18.8
|
*
|
|
|
|
|
|
|
10.18.9
|
*
|
|
|
|
|
|
|
10.18.10
|
*
|
|
|
|
|
|
|
10.18.11
|
*
|
|
|
|
|
|
|
10.18.12
|
*
|
|
|
|
|
|
|
10.18.13
|
*
|
|
|
|
|
|
|
10.18.14
|
*
|
|
|
|
|
|
|
10.19
|
*
|
|
|
|
|
|
|
10.19.1
|
*
|
|
|
|
|
|
|
10.19.2
|
*
|
|
|
|
|
|
|
10.19.3
|
*
|
|
|
|
|
|
|
10.19.4
|
*
|
|
|
|
|
|
|
10.21
|
*
|
|
|
|
|
|
|
10.23
|
*
|
|
|
|
|
|
|
10.23.1
|
*
|
|
|
|
|
|
|
10.24
|
|
|
|
|
|
|
|
10.25
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
|
31(i).1
|
|
|
|
|
|
|
|
31(i).2
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
101
|
|
The following series of unaudited XBRL-formatted documents are collectively included herewith as Exhibit 101. The financial information is extracted from T. Rowe Price Group’s consolidated financial statements and notes that are included in this Form 10-K Report.
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Label Linkbase Document
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Definition Linkbase Document
|
•
|
Board may adopt, amend or repeal the Bylaws without stockholder approval;
|
•
|
the Bylaws specify advanced notice procedures that stockholders must follow in order to bring business or nominate directors at an annual or special meeting of stockholders and has adopted proxy access procedures for director nominations through the Company’s Proxy Statement;
|
•
|
all action by stockholders must be taken at a meeting of stockholders given stockholder action by written consent must be unanimous. The Chairman of the Board or the President of the Company or a majority of the Board or stockholders holding 25% or more of the outstanding Common Stock of the Company may call a special meeting of stockholders;
|
•
|
vacancies on the Board can be filled by a majority vote of the remaining members of the Board, even where less than a quorum, or by a vote of the stockholders required for the election of directors generally;
|
•
|
the Board is authorized to issue Preferred Stock without stockholder approval; and
|
•
|
the Company is incorporated in Maryland and is thus subject to the provisions of the Maryland General Corporation Law.
|
|
|
Subsidiary companies (1)
|
Place of incorporation
|
T. Rowe Price Advisory Services, Inc.
|
Maryland
|
T. Rowe Price Associates, Inc.
|
Maryland
|
TRP Suburban, Inc.
|
Maryland
|
TRP Suburban Second, Inc.
|
Maryland
|
TRP Colorado Springs, LLC
|
Maryland
|
TRP Office Florida, LLC
|
Maryland
|
T. Rowe Price Trust Company
|
Maryland
|
T. Rowe Price Investment Services, Inc.
|
Maryland
|
T. Rowe Price Services, Inc.
|
Maryland
|
T. Rowe Price Retirement Plan Services, Inc.
|
Maryland
|
T. Rowe Price (Canada), Inc.
|
Maryland
|
TRPH Corporation
|
Maryland
|
T. Rowe Price Index Trust, Inc.
|
Maryland
|
T. Rowe Price Institutional Income Funds, Inc.
|
Maryland
|
T. Rowe Price Institutional International Funds, Inc.
|
Maryland
|
T. Rowe Price Intermediate Tax-Free High Yield Fund, Inc.
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Maryland
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T. Rowe Price International Funds, Inc.
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Maryland
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T. Rowe Price Multi-Sector Account Portfolios, Inc.
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Maryland
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T. Rowe Price Multi-Strategy Total Return Fund, Inc.
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Maryland
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T. Rowe Price Quantitative Management Funds, Inc.
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Maryland
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T. Rowe Price International Ltd
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United Kingdom
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T. Rowe Price UK Ltd.
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United Kingdom
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T. Rowe Price Hong Kong Limited
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Hong Kong
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T. Rowe Price Singapore Private Ltd.
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Singapore
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T. Rowe Price (Switzerland) GmbH
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Switzerland
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T. Rowe Price (Luxembourg) Management Sarl
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Luxembourg
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T. Rowe Price Japan, Inc.
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Japan
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T. Rowe Price Australia, Ltd.
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Australia
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1.
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I have reviewed this Form 10-K Annual Report for the fiscal year ended December 31, 2019 of T. Rowe Price Group, Inc.;
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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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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 the registrant’s board of directors (or persons performing the equivalent functions):
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1.
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I have reviewed this Form 10-K Annual Report for the fiscal year ended December 31, 2019 of T. Rowe Price Group, Inc.;
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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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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 the registrant’s board of directors (or persons performing the equivalent functions):
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