0001113169-19-000024 | 10-Q | XBRL Viewer

902.6

(9.9)

(348.8)

2,241,000

Restricted shares issued, net of shares withheld for taxes (in shares)

92.1

$ 0.4

91.7

8,000

Restricted shares issued, net of shares withheld for taxes

$ (0.1)

Net shares issued upon vesting of restricted stock units (in shares)

56,000

Net shares issued upon vesting of restricted stock units

(0.7)

(6,000)

Restricted stock units issued as dividend equivalents

90.8

0.1

(0.1)

(4,230,000)

Balances (in shares) at Jun. 30, 2018

(450.3)

$ (0.8)

(373.3)

(76.2)

243,180,000

Ending Balance at Jun. 30, 2018

6,114.6

$ 48.6

654.6

5,435.1

(23.7)

Beginning balances attributable to redeemable non-controlling interests at Dec. 31, 2017

992.8

Increase (Decrease) in Temporary Equity [Roll Forward]

Net income (loss) attributable to redeemable non-controlling interests

12.5

Other comprehensive income (loss), net of tax, attributable to redeemable non-controlling interests

(13.5)

Net subscriptions into consolidated T. Rowe Price investment products

322.6

Net reconsolidations (deconsolidations) of T. Rowe Price investment products

(575.2)

Ending balances attributable to redeemable non-controlling interests at Jun. 30, 2018

739.2

Balances (in shares) at Mar. 31, 2018

243,282,000

Beginning Balance at Mar. 31, 2018

5,901.9

$ 48.7

654.6

5,205.0

(6.4)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

448.9

(17.3)

(173.9)

1,138,000

Restricted shares issued, net of shares withheld for taxes (in shares)

47.0

$ 0.2

46.8

8,000

Restricted shares issued, net of shares withheld for taxes

(0.1)

Net shares issued upon vesting of restricted stock units (in shares)

50,000

Net shares issued upon vesting of restricted stock units

(0.3)

(2,000)

45.2

(1,296,000)

Balances (in shares) at Jun. 30, 2018

(136.8)

$ (0.3)

(91.6)

(44.9)

243,180,000

Ending Balance at Jun. 30, 2018

6,114.6

$ 48.6

654.6

5,435.1

(23.7)

Beginning balances attributable to redeemable non-controlling interests at Mar. 31, 2018

546.5

Increase (Decrease) in Temporary Equity [Roll Forward]

Net income (loss) attributable to redeemable non-controlling interests

10.7

Other comprehensive income (loss), net of tax, attributable to redeemable non-controlling interests

(20.5)

Net subscriptions into consolidated T. Rowe Price investment products

144.8

Net reconsolidations (deconsolidations) of T. Rowe Price investment products

57.7

Ending balances attributable to redeemable non-controlling interests at Jun. 30, 2018

739.2

Balances (in shares) at Dec. 31, 2018

238,069,000

Beginning Balance at Dec. 31, 2018

6,124.3

$ 47.6

654.6

5,464.1

(42.0)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

1,040.1

3.5

$ (367.2)

(367.2)

1,765,404

1,495,000

Restricted shares issued, net of shares withheld for taxes (in shares)

$ 82.8

$ 0.3

82.5

7,000

Restricted shares issued, net of shares withheld for taxes

(0.1)

Net shares issued upon vesting of restricted stock units (in shares)

33,000

Net shares issued upon vesting of restricted stock units

(1.4)

(7,000)

Restricted stock units issued as dividend equivalents

90.7

0.0

0.1

(0.1)

(4,079,000)

Balances (in shares) at Jun. 30, 2019

(393.6)

$ (0.8)

(171.8)

(221.0)

235,518,000

Ending Balance at Jun. 30, 2019

6,579.1

$ 47.1

654.6

5,915.9

(38.5)

Beginning balances attributable to redeemable non-controlling interests at Dec. 31, 2018

740.3

Increase (Decrease) in Temporary Equity [Roll Forward]

Net income (loss) attributable to redeemable non-controlling interests

69.8

Other comprehensive income (loss), net of tax, attributable to redeemable non-controlling interests

(0.3)

Net subscriptions into consolidated T. Rowe Price investment products

211.6

Net reconsolidations (deconsolidations) of T. Rowe Price investment products

(9.1)

Ending balances attributable to redeemable non-controlling interests at Jun. 30, 2019

1,012.3

Balances (in shares) at Mar. 31, 2019

236,432,000

Beginning Balance at Mar. 31, 2019

6,311.0

$ 47.3

654.5

5,650.8

(41.6)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

527.5

3.1

(183.4)

665,000

Net shares issued upon vesting of restricted stock units (in shares)

37.8

$ 0.1

37.7

19,000

Net shares issued upon vesting of restricted stock units

$ (0.2)

(2,000)

47.2

(1,603,000)

Balances (in shares) at Jun. 30, 2019

(163.8)

$ (0.3)

(84.6)

(78.9)

235,518,000

Ending Balance at Jun. 30, 2019

6,579.1

$ 47.1

$ 654.6

$ 5,915.9

$ (38.5)

Beginning balances attributable to redeemable non-controlling interests at Mar. 31, 2019

886.7

Increase (Decrease) in Temporary Equity [Roll Forward]

Net income (loss) attributable to redeemable non-controlling interests

28.4

Other comprehensive income (loss), net of tax, attributable to redeemable non-controlling interests

1.0

Net subscriptions into consolidated T. Rowe Price investment products

125.7

Net reconsolidations (deconsolidations) of T. Rowe Price investment products

(29.5)

Ending balances attributable to redeemable non-controlling interests at Jun. 30, 2019

$ 1,012.3

[1]	Includes the reclassification of $1.7 million of stranded income taxes on available-for-sale investments resulting from U.S. tax law changes enacted on December 22, 2017, from accumulated other comprehensive income to retained earnings.
[2]	Accumulated other comprehensive income.

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 6,311.0	$ 5,901.9	$ 6,124.3	$ 5,824.4
Other comprehensive income (loss)	3.1	(17.3)	3.5	(9.9)
Ending Balance	6,579.1	6,114.6	6,579.1	6,114.6
Currency translation adjustments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(41.6)	(6.4)	(42.0)	(13.8)
Other comprehensive income (loss) before reclassifications and income taxes	4.2	(22.8)	4.6	(9.8)
Reclassification adjustments recognized in non-operating income	(0.1)	(0.5)	(0.2)	(3.6)
Other comprehensive income (loss), before taxes	4.1	(23.3)	4.4	(13.4)
Net deferred tax benefits (income taxes)	(1.0)	6.0	(0.9)	3.5
Other comprehensive income (loss)	3.1	(17.3)	3.5	(9.9)
Ending Balance	(38.5)	(23.7)	(38.5)	(23.7)
Currency translation adjustments [Member] \| Equity method investments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(45.0)	(34.0)	(48.8)	(37.0)
Other comprehensive income (loss) before reclassifications and income taxes	1.5	(3.3)	6.4	0.5
Reclassification adjustments recognized in non-operating income	0.0	0.0	0.0	0.0
Other comprehensive income (loss), before taxes	1.5	(3.3)	6.4	0.5
Net deferred tax benefits (income taxes)	(0.3)	0.7	(1.4)	(0.1)
Other comprehensive income (loss)	1.2	(2.6)	5.0	0.4
Ending Balance	(43.8)	(36.6)	(43.8)	(36.6)
Currency translation adjustments [Member] \| Consolidated T. Rowe Price investment products - variable interest entities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	3.4	27.6	6.8	23.2
Other comprehensive income (loss) before reclassifications and income taxes	2.7	(19.5)	(1.8)	(10.3)
Reclassification adjustments recognized in non-operating income	(0.1)	(0.5)	(0.2)	(3.6)
Other comprehensive income (loss), before taxes	2.6	(20.0)	(2.0)	(13.9)
Net deferred tax benefits (income taxes)	(0.7)	5.3	0.5	3.6
Other comprehensive income (loss)	1.9	(14.7)	(1.5)	(10.3)
Ending Balance	$ 5.3	$ 12.9	$ 5.3	$ 12.9

LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

LEASES.

All of our leases are operating leases and primarily consist of real estate leases for corporate offices, data centers, and other facilities. As of June 30, 2019, the weighted-average remaining lease term on our leases is approximately 7.0 years and the weighted-average discount rate used to measure the lease liabilities is 3.5%.

Operating lease expense for the three months ended June 30, 2019 and 2018, was $8.5 million and $6.5 million, respectively. Operating lease expense for the six months ended June 30, 2019 and 2018, was $15.8 million and $14.7 million, respectively. Charges related to our operating leases that are variable, including variable common area maintenance charges and other management-related costs, and not included in the measurement of the lease liabilities, were $2.4 million for the three months ended June 30, 2019 and $5.1 million for the six months ended June 30, 2019.

We made lease payments of $16.9 million during the six months ended June 30, 2019. Our future undiscounted cash flows related to our operating leases and the reconciliation to the operating lease liability as of June 30, 2019, are as follows:



(in millions)	6/30/2019
2019 (excluding the six months ended June 30, 2019)	$	13.4
2020	29.6
2021	26.6
2022	22.5
2023	19.9
Thereafter	62.9
Total future undiscounted cash flows	174.9
Less: imputed interest to be recognized in lease expense	(20.0		)
Operating lease liabilities, as reported	$	154.9

FAIR VALUE MEASUREMENTS. (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair value measurements summary

The following table summarizes our investments that are recognized in our unaudited condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. This table excludes investments held by the consolidated T. Rowe Price investment products which are presented separately on our unaudited condensed consolidated balance sheets and are detailed in Note 5.



	6/30/2019				12/31/2018
(in millions)	Level 1		Level 2		Level 1		Level 2
Cash equivalents held in T. Rowe Price money market funds	$	1,542.7	$	—	$	1,196.0	$	—
T. Rowe Price investment products	1,538.7		7.5		1,519.2		19.2
T. Rowe Price investment products designated as economic hedge of supplemental savings plan liability	441.3		—		381.3		—
Total	$	3,522.7	$	7.5	$	3,096.5	$	19.2

STOCK-BASED COMPENSATION. (Restricted Shares and Stock Units) (Details)	6 Months Ended
	Jun. 30, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average fair value of nonvested restricted shares and restricted stock units at December 31, 2018 (in dollars per share) \| $ / shares	$ 87.07
Weighted-average fair value of restricted shares and restricted stock units vested (in dollars per share) \| $ / shares	97.65
Weighted-average fair value of restricted shares and restricted stock units forfeited (in dollars per share) \| $ / shares	87.81
Weighted-average fair value of nonvested restricted shares and restricted stock units at March 31, 2019 (in dollars per share) \| $ / shares	87.02
Time-based grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) \| $ / shares	$ 100.03
Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at December 31, 2018 (in shares)	136,964
Vested (in shares)	(8,710)
Forfeited (in shares)	(7,119)
Nonvested at March 31, 2019 (in shares)	128,539
Restricted shares [Member] \| Time-based grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Grants (in shares)	7,404
Restricted shares [Member] \| Performance-based [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at March 31, 2019 (in shares)	2,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested shares where performance threshold has been met (in shares)	2,400
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at December 31, 2018 (in shares)	6,603,920
Vested (in shares)	(55,360)
Forfeited (in shares)	(269,073)
Nonvested at March 31, 2019 (in shares)	6,313,708
Restricted stock units [Member] \| Time-based grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Grants (in shares)	34,221
Restricted stock units [Member] \| Performance-based [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at March 31, 2019 (in shares)	450,727
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested shares where performance threshold has been met (in shares)	289,906

INVESTMENTS. (Tables)

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Unconsolidated investments

The carrying values of our investments that are not part of the consolidated T. Rowe Price investment products are as follows:



(in millions)	6/30/2019		12/31/2018
Investments held at fair value
T. Rowe Price investment products	$	1,546.2	$	1,538.4
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability	441.3		381.3
Investment partnerships and other investments	100.4		99.6
Equity method investments
T. Rowe Price investment products	317.3		276.2
26% interest in UTI Asset Management Company Limited (India)	164.1		152.4
Investment partnerships and other investments	4.9		4.5
U.S. Treasury note	1.0		1.0
Total	$	2,575.2	$	2,453.4

Net impact of deconsolidation and consolidation on condensed consolidated balance sheets and income statements

The net impact of these

changes on our unaudited condensed consolidated balance sheets and statements of income as of the dates the portfolios were deconsolidated or reconsolidated is detailed below.



	Three months ended					Six months ended
(in millions)	6/30/2019			6/30/2018		6/30/2019			6/30/2018
Net increase (decrease) in assets of consolidated T. Rowe Price investment products	$	(68.4	)	$	97.1	$	(56.1	)	$	(660.4	)
Net increase (decrease) in liabilities of consolidated T. Rowe Price investment products	$	(.3	)	$	23.7	$	(1.2	)	$	18.5
Net increase (decrease) in redeemable non-controlling interests	$	(29.5	)	$	57.7	$	(9.1	)	$	(575.2	)

Gains (losses) recognized upon deconsolidation	$	.1		$	.5	$	.2		$	3.6

Maximum risk of loss related to investments in variable interest entities

Our investments at June 30, 2019 and December 31, 2018, include interests in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities is as follows:



(in millions)	6/30/2019		12/31/2018
Investment carrying values	$	134.5	$	143.3
Unfunded capital commitments	22.4		27.3
Uncollected investment advisory and administrative fees	17.0		5.2
	$	173.9	$	175.8

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Reclassification Adjustments) (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Dec. 31, 2017

Reclassification adjustment out of accumulated other comprehensive income

Provision for income taxes

$ (124.5)

$ (34.1)

$ (327.3)

$ (50.2)

183.7

169.2

365.0

313.6

Reclassification out of accumulated other comprehensive income [Member] | Currency translation adjustments [Member]

Reclassification adjustment out of accumulated other comprehensive income

Provision for income taxes

(0.1)

(0.5)

(0.2)

(3.6)

0.0

0.1

0.0

0.9

Equity method investments [Member] | Reclassification out of accumulated other comprehensive income [Member] | Currency translation adjustments [Member]

Reclassification adjustment out of accumulated other comprehensive income

Variable interest entities [Member] | Reclassification out of accumulated other comprehensive income [Member] | Currency translation adjustments [Member]

0.0

Reclassification adjustment out of accumulated other comprehensive income