JANUS CAPITAL GROUP INC

CIK:0001065865|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating revenues:
Investment management fees	$ 229.8	$ 210.3
Performance fees	(13.7)	(2.4)
Shareowner servicing fees and other	41.5	40.6
Total operating revenues	257.6	248.5
Operating expenses:
Employee compensation and benefits	90.9	87.9
Long-term incentive compensation	18.1	19.5
Marketing and advertising	18.6	5.3
Distribution	33.4	32.4
Depreciation and amortization	7.8	9.1
General, administrative and occupancy	33.5	31.7
Total operating expenses	202.3	185.9
Operating income	55.3	62.6
Interest expense	(5.2)	(5.2)
Investment gains (losses), net	2.1	2.2
Other income, net	2.2	1.8
Income before taxes	53.5	60.9
Income tax provision	(21.2)	(23.9)
Net income	32.3	37.0
Net income attributable to noncontrolling interests	(1.4)	(1.9)
Net income attributable to JCG	$ 30.9	$ 35.1
Earnings per share attributable to JCG common shareholders:
Basic and diluted (in dollars per share)	$ 0.17	$ 0.19
Other comprehensive income, net of tax:
Net unrealized gains on available-for-sale securities	$ 0.5	$ 0.7
Foreign currency translation adjustment	9.5	4.8
Reclassifications for items included in net income	0.2
Total other comprehensive income, net of tax	10.2	5.5
Comprehensive income	42.5	42.5
Comprehensive income attributable to noncontrolling interests	(5.7)	(1.9)
Comprehensive income attributable to JCG	36.8	40.6
Consolidated excluding VIEs
Operating expenses:
Investment gains (losses), net	2.1	2.2
Consolidated VIEs
Operating expenses:
Investment gains (losses), net	$ (0.9)	$ (0.5)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income	$ 32.3	$ 37.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7.8	9.1
Deferred income taxes	22.1	22.3
Amortization of stock-based compensation	10.6	15.2
Investment losses (gains), net	(2.1)	(2.2)
Amortization of debt discounts, premiums and deferred issuance costs	1.1	1.1
Payment of deferred commissions, net	(1.3)	(1.9)
Other, net	(3.7)	0.4
Changes in operating assets and liabilities:
Investment management fees and other receivables	(11.3)	2.1
Other assets	(8.0)	(6.5)
Accounts payable and accrued liabilities	(8.2)	(21.9)
Accrued compensation and benefits	(89.7)	(100.5)
Other liabilities	(0.6)	1.3
Net operating activities	(50.1)	(44.0)
Investing activities:
Purchase of property, equipment and software	(1.8)	(1.9)
Purchases and settlements of investment securities	(9.9)	(23.7)
Proceeds from sales, settlements and maturities of investment securities	23.9	56.4
Sales of securities by consolidated seeded investment products, net	5.9	10.6
Net investing activities	18.1	41.4
Financing activities:
Purchase of noncontrolling interests in Kapstream	(42.5)
Distributions to noncontrolling interests	(0.2)	(0.6)
Payment of contingent consideration	(15.6)
Proceeds from stock option exercises and employee stock purchases	2.6	6.2
Principal payments under capital lease obligations	(0.2)	(0.3)
Third-party redemptions in consolidated seeded investment products, net	(5.9)	(10.6)
Repurchase of common stock	(13.4)	(32.6)
Dividends paid to JCG shareholders	(20.3)	(16.7)
Net financing activities	(95.5)	(54.6)
Cash and cash equivalents:
Effect of foreign exchange rate changes	0.3
Net change	(127.2)	(57.2)
At beginning of period	485.9	364.4
At end of period	358.7	307.2
Supplemental cash flow information:
Cash paid for interest	7.7	7.8
Cash paid for income taxes, net of refunds	10.8	3.7
Consolidated excluding VIEs
Adjustments to reconcile net income to net cash provided by operating activities:
Investment losses (gains), net	(2.1)	(2.2)
Investing activities:
Purchases and settlements of investment securities	(8.7)	(23.7)
Proceeds from sales, settlements and maturities of investment securities	17.3	8.2
Cash and cash equivalents:
At beginning of period	485.9
At end of period	358.7
Consolidated VIEs
Adjustments to reconcile net income to net cash provided by operating activities:
Investment losses (gains), net	0.9	0.5
Investing activities:
Purchases and settlements of investment securities	(1.2)
Proceeds from sales, settlements and maturities of investment securities	6.6	$ 48.2
Cash and cash equivalents:
At beginning of period	6.1
At end of period	$ 2.0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 358.7	$ 485.9
Investment management fees and other receivables	141.3	129.6
Other current assets	41.9	37.4
Total current assets	840.1	963.0
Non-current assets:
Property, equipment and software, net	32.8	34.2
Intangible assets, net	1,341.8	1,339.0
Goodwill	607.3	601.9
Other non-current assets	11.8	11.8
Total assets	2,833.8	2,949.9
Current liabilities:
Accrued compensation and benefits	48.9	138.5
Current portion of long-term debt	111.9
Total current liabilities	258.2	231.7
Non-current liabilities:
Long-term debt	295.5	406.3
Deferred income taxes, net	527.1	502.8
Other non-current liabilities	55.4	46.7
Total liabilities	1,136.2	1,187.5
Commitments and contingencies (See Note 14)
REDEEMABLE NONCONTROLLING INTERESTS	38.7	43.1
EQUITY
Preferred stock ($1.00 par, 10,000,000 shares authorized, none issued)
Common stock ($0.01 par, 1,000,000,000 shares authorized; 184,284,047 and 182,671,008 shares outstanding, respectively)	1.8	1.8
Retained earnings	1,652.3	1,636.5
Accumulated other comprehensive loss, net of tax	(2.0)	(7.9)
Total JCG stockholders' equity	1,652.1	1,630.4
Noncontrolling interests	6.8	88.9
Total equity	1,658.9	1,719.3
Total liabilities, redeemable noncontrolling interests and equity	2,833.8	2,949.9
Consolidated excluding VIEs
Current assets:
Cash and cash equivalents	358.7	485.9
Investment securities	203.2	212.1
Current liabilities:
Accounts payable and accrued liabilities	95.7	92.7
Consolidated VIEs
Current assets:
Cash and cash equivalents	2.0	6.1
Investment securities	91.9	91.6
Accounts receivable	1.1	0.3
Current liabilities:
Accounts payable and accrued liabilities	$ 1.7	$ 0.5