Maryland | 000-32191 | 52-2264646 | ||||||
(State of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.20 | TROW | The NASDAQ Stock Market LLC |
Three months ended | ||||||||||||||||||||||||||||||||
(in millions, except per-share data) | 9/30/2023 | 9/30/2022 | Change | 6/30/2023 | Change | |||||||||||||||||||||||||||
U.S. GAAP basis | ||||||||||||||||||||||||||||||||
Investment advisory fees | $ | 1,463.9 | $ | 1,442.0 | 1.5 | % | $ | 1,430.8 | 2.3 | % | ||||||||||||||||||||||
Capital allocation-based income(1) (2) |
$ | 66.1 | $ | 1.1 | n/m | $ | 38.7 | n/m | ||||||||||||||||||||||||
Net revenues | $ | 1,670.7 | $ | 1,588.2 | 5.2 | % | $ | 1,610.2 | 3.8 | % | ||||||||||||||||||||||
Operating expenses | $ | 1,089.4 | $ | 1,013.6 | 7.5 | % | $ | 1,076.7 | 1.2 | % | ||||||||||||||||||||||
Net operating income | $ | 581.3 | $ | 574.6 | 1.2 | % | $ | 533.5 | 9.0 | % | ||||||||||||||||||||||
Non-operating income (loss)(2) |
$ | 2.8 | $ | (82.8) | n/m | $ | 106.2 | n/m | ||||||||||||||||||||||||
Net income attributable to T. Rowe Price | $ | 453.2 | $ | 384.4 | 17.9 | % | $ | 476.4 | (4.9) | % | ||||||||||||||||||||||
Diluted earnings per common share | $ | 1.97 | $ | 1.66 | 18.7 | % | $ | 2.06 | (4.4) | % | ||||||||||||||||||||||
Weighted average common shares outstanding assuming dilution | 224.8 | 226.3 | (0.7) | % | 225.2 | (0.2) | % | |||||||||||||||||||||||||
Adjusted basis(3) |
||||||||||||||||||||||||||||||||
Operating expenses | $ | 1,061.3 | $ | 1,028.2 | 3.2 | % | $ | 1,026.2 | 3.4 | % | ||||||||||||||||||||||
Operating expenses, excluding accrued carried interest related compensation | $ | 1,030.8 | $ | 1,022.5 | 0.8 | % | $ | 1,010.5 | 2.0 | % | ||||||||||||||||||||||
Net operating income | $ | 635.9 | $ | 573.7 | 10.8 | % | $ | 596.6 | 6.6 | % | ||||||||||||||||||||||
Non-operating income (loss)(2) |
$ | 28.7 | $ | (3.7) | n/m | $ | 31.8 | n/m | ||||||||||||||||||||||||
Net income attributable to T. Rowe Price | $ | 499.5 | $ | 430.6 | 16.0 | % | $ | 466.5 | 7.1 | % | ||||||||||||||||||||||
Diluted earnings per common share | $ | 2.17 | $ | 1.86 | 16.7 | % | $ | 2.02 | 7.4 | % | ||||||||||||||||||||||
Assets under management (in billions) |
||||||||||||||||||||||||||||||||
Average assets under management | $ | 1,393.6 | $ | 1,347.5 | 3.4 | % | $ | 1,357.4 | 2.7 | % | ||||||||||||||||||||||
Ending assets under management | $ | 1,346.5 | $ | 1,230.0 | 9.5 | % | $ | 1,399.4 | (3.8) | % | ||||||||||||||||||||||
Investment advisory effective fee rate (bps) | 41.7 | 42.5 | (1.9) | % | 42.3 | (1.4) | % |
Three months ended 9/30/2023 |
|||||||||||||||||||||||||||||
(in billions) | Equity | Fixed income, including money market | Multi-asset(1) |
Alternatives(2) |
Total | ||||||||||||||||||||||||
Assets under management at beginning of period | $ | 732.2 | $ | 169.3 | $ | 453.2 | $ | 44.7 | $ | 1,399.4 | |||||||||||||||||||
Net cash flows(3) |
(19.7) | 1.0 | 0.4 | 0.9 | (17.4) | ||||||||||||||||||||||||
Net market appreciation (depreciation) and gains (losses)(4) |
(22.5) | (1.0) | (13.1) | 1.1 | (35.5) | ||||||||||||||||||||||||
Change during the period | (42.2) | — | (12.7) | 2.0 | (52.9) | ||||||||||||||||||||||||
Assets under management at September 30, 2023 |
$ | 690.0 | $ | 169.3 | $ | 440.5 | $ | 46.7 | $ | 1,346.5 |
Three months ended | ||||||||||||||||||||||||||||||||
(in millions) | 9/30/2023 | 9/30/2022 | % Change | 6/30/2023 | % Change | |||||||||||||||||||||||||||
Investment advisory fees | ||||||||||||||||||||||||||||||||
Equity | $ | 885.0 | $ | 897.0 | (1.3) | % | $ | 862.3 | 2.6 | % | ||||||||||||||||||||||
Fixed income, including money market | 100.9 | 107.6 | (6.2) | % | 100.0 | 0.9 | % | |||||||||||||||||||||||||
Multi-asset | 405.5 | 367.2 | 10.4 | % | 391.3 | 3.6 | % | |||||||||||||||||||||||||
Alternatives | 72.5 | 70.2 | 3.3 | % | 77.2 | (6.1) | % | |||||||||||||||||||||||||
Total investment advisory fees | $ | 1,463.9 | $ | 1,442.0 | 1.5 | % | $ | 1,430.8 | 2.3 | % | ||||||||||||||||||||||
Capital allocation-based income(1) |
$ | 66.1 | $ | 1.1 | n/m | $ | 38.7 | n/m | ||||||||||||||||||||||||
Administrative, distribution, and servicing fees | 140.7 | 145.1 | (3.0) | % | 140.7 | — | % | |||||||||||||||||||||||||
Net revenues | $ | 1,670.7 | $ | 1,588.2 | 5.2 | % | $ | 1,610.2 | 3.8 | % | ||||||||||||||||||||||
Average AUM (in billions): | ||||||||||||||||||||||||||||||||
Equity | $ | 725.0 | $ | 724.9 | — | % | $ | 703.4 | 3.1 | % | ||||||||||||||||||||||
Fixed income, including money market | 169.0 | 173.0 | (2.3) | % | 170.4 | (0.8) | % | |||||||||||||||||||||||||
Multi-asset | 453.8 | 406.7 | 11.6 | % | 439.0 | 3.4 | % | |||||||||||||||||||||||||
Alternatives | 45.8 | 42.9 | 6.8 | % | 44.6 | 2.7 | % | |||||||||||||||||||||||||
Average AUM | $ | 1,393.6 | $ | 1,347.5 | 3.4 | % | $ | 1,357.4 | 2.7 | % | ||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
(in millions) | 9/30/2023 | 9/30/2022 | % Change (1) |
6/30/2023 | % Change (1) |
|||||||||||||||||||||||||||
Compensation, benefits, and related costs | $ | 617.0 | $ | 595.6 | 3.6 | % | $ | 591.0 | 4.4 | % | ||||||||||||||||||||||
Acquisition-related retention agreements | 13.7 | 17.1 | (19.9) | % | 13.6 | 0.7 | % | |||||||||||||||||||||||||
Capital allocation-based income compensation(2) |
19.9 | 0.1 | n/m | 10.6 | n/m | |||||||||||||||||||||||||||
Supplemental savings plan | (14.2) | (24.7) | n/m | 33.0 | n/m | |||||||||||||||||||||||||||
Total compensation and related costs | 636.4 | 588.1 | 8.2 | % | 648.2 | (1.8) | % | |||||||||||||||||||||||||
Distribution and servicing | 74.9 | 69.9 | 7.2 | % | 67.8 | 10.5 | % | |||||||||||||||||||||||||
Advertising and promotion | 21.1 | 24.3 | (13.2) | % | 22.9 | (7.9) | % | |||||||||||||||||||||||||
Product and recordkeeping related costs | 73.1 | 75.6 | (3.3) | % | 77.7 | (5.9) | % | |||||||||||||||||||||||||
Technology, occupancy, and facility costs | 159.7 | 143.6 | 11.2 | % | 154.7 | 3.2 | % | |||||||||||||||||||||||||
General, administrative, and other | 85.7 | 114.9 | (25.4) | % | 100.0 | (14.3) | % | |||||||||||||||||||||||||
Change in fair value of contingent consideration | — | (29.9) | n/m | (23.2) | n/m | |||||||||||||||||||||||||||
Acquisition-related amortization and impairment costs | 38.5 | 27.1 | 42.1 | % | 28.6 | 34.6 | % | |||||||||||||||||||||||||
Total operating expenses | $ | 1,089.4 | $ | 1,013.6 | 7.5 | % | $ | 1,076.7 | 1.2 | % | ||||||||||||||||||||||
Total adjusted operating expenses(3) |
$ | 1,061.3 | $ | 1,028.2 | 3.2 | % | $ | 1,026.2 | 3.4 | % | ||||||||||||||||||||||
(in millions) | Three months ended | ||||||||||||||||
9/30/2023 | 9/30/2022 | 6/30/2023 | |||||||||||||||
Net gains (losses) from non-consolidated T. Rowe Price investment products | |||||||||||||||||
Cash and discretionary investments | |||||||||||||||||
Dividend income | $ | 30.3 | $ | 11.5 | $ | 25.5 | |||||||||||
Market-related gains (losses) and equity in earnings (losses) | 2.2 | (15.2) | 6.3 | ||||||||||||||
Total net gains (losses) from cash and discretionary investments | 32.5 | (3.7) | 31.8 | ||||||||||||||
Seed capital investments | |||||||||||||||||
Dividend income | 0.3 | 0.2 | 0.4 | ||||||||||||||
Market-related gains (losses) and equity in earnings (losses) | (4.5) | (14.1) | 14.4 | ||||||||||||||
Net gains recognized upon deconsolidation | 0.7 | — | — | ||||||||||||||
Investments used to hedge the supplemental savings plan liability | (19.7) | (26.3) | 33.6 | ||||||||||||||
Total net gains (losses) from non-consolidated T. Rowe Price investment products | 9.3 | (43.9) | 80.2 | ||||||||||||||
Other investment income | 21.4 | 2.4 | 8.9 | ||||||||||||||
Net gains (losses) on investments | 30.7 | (41.5) | 89.1 | ||||||||||||||
Net gains (losses) on consolidated sponsored investment portfolios | (24.4) | (41.7) | 24.4 | ||||||||||||||
Other gains (losses), including foreign currency losses | (3.5) | 0.4 | (7.3) | ||||||||||||||
Non-operating income (loss) | $ | 2.8 | $ | (82.8) | $ | 106.2 | |||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
9/30/2023 | 9/30/2022 | 9/30/2023 | 9/30/2022 | |||||||||||||||||||||||
Statutory U.S. federal income tax rate |
21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||||||
State income taxes for current year, net of federal income tax benefits(1) |
3.3 | 3.4 | 3.0 | 3.5 | ||||||||||||||||||||||
Net (income) losses attributable to redeemable non-controlling interests(2) |
0.1 | 2.5 | (0.2) | 1.6 | ||||||||||||||||||||||
Net excess tax benefits from stock-based compensation plans activity |
(0.4) | (0.5) | (0.3) | (0.5) | ||||||||||||||||||||||
Other items, including valuation allowances | 0.8 | 0.8 | 2.6 | — | ||||||||||||||||||||||
Effective income tax rate |
24.8 | % | 27.2 | % | 26.1 | % | 25.6 | % | ||||||||||||||||||
Public Relations | Investor Relations | ||||||||||
Jeanne Moore | Linsley Carruth | ||||||||||
443-938-0463 | 410-345-3717 | ||||||||||
jeanne.moore@troweprice.com | linsley.carruth@troweprice.com | ||||||||||
Jamaal Mobley | |||||||||||
410-345-3403 | |||||||||||
jamaal.mobley@troweprice.com | |||||||||||
Unaudited Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
Revenues | 9/30/2023 | 9/30/2022 | 6/30/2023 | 9/30/2023 | 9/30/2022 | ||||||||||||||||||||||||||||||
Investment advisory fees | $ | 1,463.9 | $ | 1,442.0 | $ | 1,430.8 | $ | 4,286.5 | $ | 4,600.8 | |||||||||||||||||||||||||
Capital allocation-based income | 66.1 | 1.1 | 38.7 | 121.7 | (80.8) | ||||||||||||||||||||||||||||||
Administrative, distribution, and servicing fees | 140.7 | 145.1 | 140.7 | 410.3 | 444.2 | ||||||||||||||||||||||||||||||
Net revenues | 1,670.7 | 1,588.2 | 1,610.2 | 4,818.5 | 4,964.2 | ||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Compensation, benefits, and related costs | 617.0 | 595.6 | 591.0 | 1,801.3 | 1,781.3 | ||||||||||||||||||||||||||||||
Acquisition-related retention agreements | 13.7 | 17.1 | 13.6 | 41.5 | 54.3 | ||||||||||||||||||||||||||||||
Capital allocation-based income compensation | 19.9 | 0.1 | 10.6 | 34.0 | (33.3) | ||||||||||||||||||||||||||||||
Supplemental savings plan | (14.2) | (24.7) | 33.0 | 61.3 | (169.2) | ||||||||||||||||||||||||||||||
Total compensation and related costs | 636.4 | 588.1 | 648.2 | 1,938.1 | 1,633.1 | ||||||||||||||||||||||||||||||
Distribution and servicing | 74.9 | 69.9 | 67.8 | 214.2 | 231.5 | ||||||||||||||||||||||||||||||
Advertising and promotion | 21.1 | 24.3 | 22.9 | 69.8 | 69.1 | ||||||||||||||||||||||||||||||
Product and recordkeeping related costs | 73.1 | 75.6 | 77.7 | 222.9 | 232.3 | ||||||||||||||||||||||||||||||
Technology, occupancy, and facility costs | 159.7 | 143.6 | 154.7 | 461.0 | 411.8 | ||||||||||||||||||||||||||||||
General, administrative, and other | 85.7 | 114.9 | 100.0 | 293.2 | 310.1 | ||||||||||||||||||||||||||||||
Contingent consideration fair value adjustments | — | (29.9) | (23.2) | (72.8) | (125.7) | ||||||||||||||||||||||||||||||
Acquisition-related amortization and impairment costs | 38.5 | 27.1 | 28.6 | 93.1 | 81.4 | ||||||||||||||||||||||||||||||
Total operating expenses | 1,089.4 | 1,013.6 | 1,076.7 | 3,219.5 | 2,843.6 | ||||||||||||||||||||||||||||||
Net operating income | 581.3 | 574.6 | 533.5 | 1,599.0 | 2,120.6 | ||||||||||||||||||||||||||||||
Non-operating income (loss) | |||||||||||||||||||||||||||||||||||
Net gains (losses) on investments | 30.7 | (41.5) | 89.1 | 213.7 | (301.3) | ||||||||||||||||||||||||||||||
Net gains (losses) on consolidated investment products | (24.4) | (41.7) | 24.4 | 45.4 | (247.7) | ||||||||||||||||||||||||||||||
Other gains (losses) | (3.5) | 0.4 | (7.3) | (14.7) | (12.2) | ||||||||||||||||||||||||||||||
Total non-operating income (loss) | 2.8 | (82.8) | 106.2 | 244.4 | (561.2) | ||||||||||||||||||||||||||||||
Income before income taxes | 584.1 | 491.8 | 639.7 | 1,843.4 | 1,559.4 | ||||||||||||||||||||||||||||||
Provision for income taxes | 144.9 | 134.0 | 158.5 | 481.3 | 399.4 | ||||||||||||||||||||||||||||||
Net income | 439.2 | 357.8 | 481.2 | 1,362.1 | 1,160.0 | ||||||||||||||||||||||||||||||
Less: net income (loss) attributable to redeemable non-controlling interests | (14.0) | (26.6) | 4.8 | 11.0 | (131.9) | ||||||||||||||||||||||||||||||
Net income attributable to T. Rowe Price | 453.2 | 384.4 | 476.4 | 1,351.1 | 1,291.9 | ||||||||||||||||||||||||||||||
Less: net income allocated to outstanding restricted stock and stock unit holders | 10.6 | 9.2 | 11.6 | 32.7 | 29.6 | ||||||||||||||||||||||||||||||
Net income allocated to T. Rowe Price common stockholders | $ | 442.6 | $ | 375.2 | $ | 464.8 | $ | 1,318.4 | $ | 1,262.3 | |||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||||
Basic | $ | 1.98 | $ | 1.67 | $ | 2.07 | $ | 5.88 | $ | 5.57 | |||||||||||||||||||||||||
Diluted | $ | 1.97 | $ | 1.66 | $ | 2.06 | $ | 5.86 | $ | 5.54 | |||||||||||||||||||||||||
Weighted-average common shares | |||||||||||||||||||||||||||||||||||
Outstanding | 224.1 | 225.3 | 224.4 | 224.3 | 226.7 | ||||||||||||||||||||||||||||||
Outstanding assuming dilution | 224.8 | 226.3 | 225.2 | 225.1 | 228.0 | ||||||||||||||||||||||||||||||
Summary of Adjusted Basis(1) |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
(in millions, except per-share data) | 9/30/2023 | 9/30/2022 | 6/30/2023 | 9/30/2023 | 9/30/2022 | ||||||||||||||||||||||||||||||
Operating expenses | $ | 1,061.3 | $ | 1,028.2 | $ | 1,026.2 | $ | 3,110.0 | $ | 3,014.6 | |||||||||||||||||||||||||
Operating expenses, excluding accrued carried interest related compensation | $ | 1,030.8 | $ | 1,022.5 | $ | 1,010.5 | $ | 3,055.2 | $ | 3,031.0 | |||||||||||||||||||||||||
Net operating income | $ | 635.9 | $ | 573.7 | $ | 596.6 | $ | 1,760.5 | $ | 1,991.4 | |||||||||||||||||||||||||
Non-operating income (loss) | $ | 28.7 | $ | (3.7) | $ | 31.8 | $ | 91.3 | $ | (58.1) | |||||||||||||||||||||||||
Net income attributable to T. Rowe Price | $ | 499.5 | $ | 430.6 | $ | 466.5 | $ | 1,355.4 | $ | 1,465.2 | |||||||||||||||||||||||||
Diluted earnings per common share | $ | 2.17 | $ | 1.86 | $ | 2.02 | $ | 5.88 | $ | 6.28 | |||||||||||||||||||||||||
(1) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. |
Assets Under Management | Nine months ended 9/30/2023 |
||||||||||||||||||||||||||||
(in billions) | Equity | Fixed income, including money market | Multi-asset(1) |
Alternatives(2) |
Total | ||||||||||||||||||||||||
Assets under management at beginning of period | $ | 664.2 | $ | 167.0 | $ | 400.1 | $ | 43.4 | $ | 1,274.7 | |||||||||||||||||||
Net cash flows(3) |
(62.7) | (0.8) | 9.1 | 0.9 | (53.5) | ||||||||||||||||||||||||
Net market appreciation and gains(4) |
88.5 | 3.1 | 31.3 | 2.4 | 125.3 | ||||||||||||||||||||||||
Change during the period | 25.8 | 2.3 | 40.4 | 3.3 | 71.8 | ||||||||||||||||||||||||
Assets under management at September 30, 2023 |
$ | 690.0 | $ | 169.3 | $ | 440.5 | $ | 46.7 | $ | 1,346.5 |
Net Revenues | Nine months ended | ||||||||||||||||
(in millions) | 9/30/2023 | 9/30/2022 | % Change | ||||||||||||||
Investment advisory fees | |||||||||||||||||
Equity | $ | 2,581.2 | $ | 2,924.0 | (11.7) | % | |||||||||||
Fixed income, including money market | 303.3 | 324.1 | (6.4) | % | |||||||||||||
Multi-asset | 1,182.8 | 1,149.3 | 2.9 | % | |||||||||||||
Alternatives | 219.2 | 203.4 | 7.8 | % | |||||||||||||
Total investment advisory fees | $ | 4,286.5 | $ | 4,600.8 | (6.8) | % | |||||||||||
Capital allocation-based income(1) |
121.7 | (80.8) | n/m | ||||||||||||||
Administrative, distribution, and servicing fees | 410.3 | 444.2 | (7.6) | % | |||||||||||||
Net revenues | $ | 4,818.5 | $ | 4,964.2 | (2.9) | % | |||||||||||
Average AUM (in billions): | |||||||||||||||||
Equity | $ | 705.3 | $ | 793.0 | (11.1) | % | |||||||||||
Fixed income, including money market | 169.6 | 175.1 | (3.1) | % | |||||||||||||
Multi-asset | 438.5 | 426.6 | 2.8 | % | |||||||||||||
Alternatives | 44.8 | 42.4 | 5.7 | % | |||||||||||||
Average AUM | $ | 1,358.2 | $ | 1,437.1 | (5.5) | % | |||||||||||
Non-Operating Income (Loss) | |||||||||||
(in millions) | Nine months ended | ||||||||||
9/30/2023 | 9/30/2022 | ||||||||||
Net gains (losses) from non-consolidated T. Rowe Price investment products | |||||||||||
Cash and discretionary investments | |||||||||||
Dividend income | $ | 76.0 | $ | 15.1 | |||||||
Market-related gains (losses) and equity in earnings (losses) | 19.1 | (73.2) | |||||||||
Total net gains (losses) from cash and discretionary investments | 95.1 | (58.1) | |||||||||
Seed capital investments | |||||||||||
Dividend income | 1.2 | 0.6 | |||||||||
Market-related gains (losses) and equity in earnings (losses) | 25.0 | (77.5) | |||||||||
Net gains recognized upon deconsolidation | 0.7 | 6.8 | |||||||||
Investments used to hedge the supplemental savings plan liability | 58.6 | (178.0) | |||||||||
Total net gains (losses) from non-consolidated T. Rowe Price investment products | 180.6 | (306.2) | |||||||||
Other investment income | 33.1 | 4.9 | |||||||||
Net gains (losses) on investments | 213.7 | (301.3) | |||||||||
Net gains (losses) on consolidated sponsored investment portfolios | 45.4 | (247.7) | |||||||||
Other losses, including foreign currency losses | (14.7) | (12.2) | |||||||||
Non-operating income (loss) | $ | 244.4 | $ | (561.2) | |||||||
Nine months ended | |||||||||||||||||||||||
9/30/2023 | |||||||||||||||||||||||
(in millions) |
Cash flow attributable to T. Rowe Price | Cash flow attributable to consolidated T. Rowe Price investment products |
Elims |
As reported |
|||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net income (loss) | $ | 1,351.1 | $ | 36.6 | $ | (25.6) | $ | 1,362.1 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation, amortization and impairments of property, equipment and software | 181.6 | — | — | 181.6 | |||||||||||||||||||
Amortization and impairment of acquisition-related assets and retention agreements | 165.6 | — | — | 165.6 | |||||||||||||||||||
Fair value remeasurement of contingent liability | (72.8) | — | — | (72.8) | |||||||||||||||||||
Stock-based compensation expense | 169.7 | — | — | 169.7 | |||||||||||||||||||
Net (gains) losses recognized on investments | (326.0) | — | 25.6 | (300.4) | |||||||||||||||||||
Net redemptions in sponsored investment products used to economically hedge supplemental savings plan liability | 101.3 | — | — | 101.3 | |||||||||||||||||||
Net change in trading securities held by consolidated sponsored investment products | — | (779.9) | — | (779.9) | |||||||||||||||||||
Other changes | 546.8 | 11.8 | (9.3) | 549.3 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 2,117.3 | (731.5) | (9.3) | 1,376.5 | |||||||||||||||||||
Net cash provided by (used in) investing activities | (333.3) | (35.6) | 407.0 | 38.1 | |||||||||||||||||||
Net cash provided by (used in) financing activities | (960.9) | 741.4 | (397.7) | (617.2) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment products | — | (1.8) | — | (1.8) | |||||||||||||||||||
Net change in cash and cash equivalents during period | 823.1 | (27.5) | — | 795.6 | |||||||||||||||||||
Cash and cash equivalents at beginning of year | 1,755.6 | 119.1 | — | 1,874.7 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 2,578.7 | $ | 91.6 | $ | — | $ | 2,670.3 |
Unaudited Condensed Consolidated Balance Sheet Information (in millions) | As of | ||||||||||
9/30/2023 | 12/31/2022 | ||||||||||
Cash and cash equivalents | $ | 2,578.7 | $ | 1,755.6 | |||||||
Accounts receivable and accrued revenue | 752.0 | 748.7 | |||||||||
Investments | 2,503.6 | 2,539.2 | |||||||||
Assets of consolidated sponsored investment products | 1,778.3 | 1,603.4 | |||||||||
Operating lease assets | 250.5 | 279.4 | |||||||||
Property, equipment and software, net | 799.1 | 755.7 | |||||||||
Goodwill and intangible assets | 3,185.2 | 3,272.6 | |||||||||
Other assets | 709.4 | 688.7 | |||||||||
Total assets | 12,556.8 | 11,643.3 | |||||||||
Supplemental savings plan liability | 786.6 | 761.2 | |||||||||
Contingent consideration | 23.0 | 95.8 | |||||||||
Total other liabilities, includes $83.8 at September 30, 2023, and $89.1 at December 31, 2022, from consolidated sponsored investment products |
1,565.6 | 1,099.4 | |||||||||
Non-controlling interests* | 781.7 | 847.4 | |||||||||
Stockholders' equity attributable to T. Rowe Price Group, Inc., 223.5 common shares outstanding at
September 30, 2023 and 224.3 common shares outstanding at December 31, 2022
|
$ | 9,399.9 | $ | 8,839.5 |
Three months ended | Nine months ended | ||||||||||||||||||||||
Investments in affiliated private investment funds - carried interest | 9/30/2023 | 9/30/2022 | 9/30/2023 | 9/30/2022 | |||||||||||||||||||
Balance at beginning of period | $ | 514.2 | $ | 507.2 | $ | 467.8 | $ | 609.8 | |||||||||||||||
Capital allocation-based income: | |||||||||||||||||||||||
Change in accrued carried interest | 91.9 | 14.3 | 172.1 | (41.1) | |||||||||||||||||||
Acquisition-related amortization and impairments | (25.8) | (13.2) | (50.4) | (39.7) | |||||||||||||||||||
Net distributions | (2.1) | — | (11.3) | (20.7) | |||||||||||||||||||
Balance at end of period |
$ | 578.2 | $ | 508.3 | $ | 578.2 | $ | 508.3 |
Three months ended | Nine months ended | ||||||||||||||||||||||
Non-controlling interests (NCI) in consolidated entities | 9/30/2023 | 9/30/2022 | 9/30/2023 | 9/30/2022 | |||||||||||||||||||
Balance at beginning of period | $ | 202.1 | $ | 208.8 | $ | 190.7 | $ | 248.7 | |||||||||||||||
Capital allocation-based income compensation: | |||||||||||||||||||||||
Change in accrued carried interest compensation | 30.5 | 5.7 | 54.8 | (16.4) | |||||||||||||||||||
Acquisition-related amortization and impairments | (10.6) | (5.6) | (20.8) | (16.9) | |||||||||||||||||||
Net distributions | (0.5) | (1.9) | (3.2) | (8.4) | |||||||||||||||||||
Balance at end of period |
$ | 221.5 | $ | 207.0 | $ | 221.5 | $ | 207.0 |
Three months ended 9/30/2023 | |||||||||||||||||||||||||||||||||||
Operating expenses | Net operating income | Non-operating income (loss) | Provision (benefit) for income taxes(6) |
Net income attributable to T. Rowe Price | Diluted earnings per share(7) |
||||||||||||||||||||||||||||||
U.S. GAAP Basis (FS line item) | $ | 1,089.4 | $ | 581.3 | $ | 2.8 | $ | 144.9 | $ | 453.2 | $ | 1.97 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
10.6 | 15.2 | — | 4.6 | 10.6 | 0.04 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(13.7) | 13.7 | — | 4.2 | 9.5 | 0.04 | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(38.5) | 38.5 | — | 11.7 | 26.8 | 0.12 | |||||||||||||||||||||||||||||
Total acquisition-related non-GAAP adjustments | (41.6) | 67.4 | — | 20.5 | 46.9 | 0.20 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
14.2 | (14.2) | 19.7 | 1.7 | 3.8 | 0.02 | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(0.7) | 1.4 | 24.4 | 3.6 | 8.2 | 0.03 | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | (18.2) | (5.6) | (12.6) | (0.05) | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 1,061.3 | $ | 635.9 | $ | 28.7 | $ | 165.1 | $ | 499.5 | $ | 2.17 |
Three months ended 9/30/2022 |
|||||||||||||||||||||||||||||||||||
Operating expenses | Net operating income | Non-operating income (loss) | Provision (benefit) for income taxes(6) |
Net income attributable to T. Rowe Price | Diluted earnings per share(7) |
||||||||||||||||||||||||||||||
U.S. GAAP Basis (FS line item) | $ | 1,013.6 | $ | 574.6 | $ | (82.8) | $ | 134.0 | $ | 384.4 | $ | 1.66 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
5.6 | 7.6 | — | 1.4 | 6.2 | 0.03 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(17.1) | 17.1 | — | 3.0 | 14.1 | 0.06 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
29.9 | (29.9) | — | (3.8) | (26.1) | (0.11) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(27.1) | 27.1 | — | 5.1 | 22.0 | 0.09 | |||||||||||||||||||||||||||||
Transaction costs(2) (General, admin and other) |
(0.1) | 0.1 | — | — | 0.1 | — | |||||||||||||||||||||||||||||
Total acquisition-related non-GAAP adjustments | (8.8) | 22.0 | — | 5.7 | 16.3 | 0.07 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
24.7 | (24.7) | 26.3 | 0.1 | 1.5 | 0.01 | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(1.3) | 1.8 | 41.7 | (0.3) | 17.2 | 0.07 | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | 11.1 | (0.1) | 11.2 | 0.05 | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 1,028.2 | $ | 573.7 | $ | (3.7) | $ | 139.4 | $ | 430.6 | $ | 1.86 |
Three months ended 6/30/2023 |
|||||||||||||||||||||||||||||||||||
Operating expenses | Net operating income | Non-operating income (loss) | Provision (benefit) for income taxes(6) |
Net income attributable to T. Rowe Price | Diluted earnings per share(7) |
||||||||||||||||||||||||||||||
U.S. GAAP Basis (FS line item) | $ | 1,076.7 | $ | 533.5 | $ | 106.2 | $ | 158.5 | $ | 476.4 | $ | 2.06 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
5.1 | 7.2 | — | 0.1 | 7.1 | 0.03 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(13.6) | 13.6 | — | (0.1) | 13.7 | 0.06 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
23.2 | (23.2) | — | 2.5 | (25.7) | (0.11) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(28.6) | 28.6 | — | 0.4 | 28.2 | 0.12 | |||||||||||||||||||||||||||||
Total acquisition-related non-GAAP adjustments | (13.9) | 26.2 | — | 2.9 | 23.3 | 0.10 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
(33.0) | 33.0 | (33.6) | 0.2 | (0.8) | — | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(3.6) | 3.9 | (24.4) | 0.5 | (16.2) | (0.07) | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | (16.4) | (0.2) | (16.2) | (0.07) | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 1,026.2 | $ | 596.6 | $ | 31.8 | $ | 161.9 | $ | 466.5 | $ | 2.02 |
Nine months ended 9/30/2023 |
|||||||||||||||||||||||||||||||||||
Operating expenses | Net operating income | Non-operating income (loss) | Provision (benefit) for income taxes(6) |
Net income attributable to T. Rowe Price | Diluted earnings per share(7) |
||||||||||||||||||||||||||||||
U.S. GAAP Basis (FS line item) | $ | 3,219.5 | $ | 1,599.0 | $ | 244.4 | $ | 481.3 | $ | 1,351.1 | $ | 5.86 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
20.8 | 29.6 | — | 6.2 | 23.4 | 0.10 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(41.5) | 41.5 | — | 7.2 | 34.3 | 0.15 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
72.8 | (72.8) | — | (8.0) | (64.8) | (0.28) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(93.1) | 93.1 | — | 17.7 | 75.4 | 0.33 | |||||||||||||||||||||||||||||
Total acquisition-related non-GAAP adjustments | (41.0) | 91.4 | — | 23.1 | 68.3 | 0.30 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
(61.3) | 61.3 | (58.6) | 1.4 | 1.3 | 0.01 | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(7.2) | 8.8 | (45.4) | (0.5) | (25.1) | (0.11) | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | (49.1) | (8.9) | (40.2) | (0.18) | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 3,110.0 | $ | 1,760.5 | $ | 91.3 | $ | 496.4 | $ | 1,355.4 | $ | 5.88 |
Nine months ended 9/30/2022 | |||||||||||||||||||||||||||||||||||
Operating expenses | Net operating income | Non-operating income (loss) | Provision (benefit) for income taxes(6) |
Net income attributable to T. Rowe Price | Diluted earnings per share(7) |
||||||||||||||||||||||||||||||
U.S. GAAP Basis (FS line item) | $ | 2,843.6 | $ | 2,120.6 | $ | (561.2) | $ | 399.4 | $ | 1,291.9 | $ | 5.54 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
16.9 | 22.8 | — | 6.5 | 16.3 | 0.07 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(54.3) | 54.3 | — | 15.4 | 38.9 | 0.17 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
125.7 | (125.7) | — | (35.7) | (90.0) | (0.40) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(81.4) | 81.4 | — | 23.1 | 58.3 | 0.25 | |||||||||||||||||||||||||||||
Transaction costs(2) (General, admin and other) |
(0.9) | 0.9 | — | 0.2 | 0.7 | — | |||||||||||||||||||||||||||||
Total acquisition-related non-GAAP adjustments | 6.0 | 33.7 | — | 9.5 | 24.2 | 0.09 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
169.2 | (169.2) | 178.0 | 2.5 | 6.3 | 0.03 | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(4.2) | 6.3 | 247.7 | 34.7 | 87.4 | 0.38 | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | 77.4 | 22.0 | 55.4 | 0.24 | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 3,014.6 | $ | 1,991.4 | $ | (58.1) | $ | 468.1 | $ | 1,465.2 | $ | 6.28 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
9/30/2023 | 9/30/2022 | 6/30/2023 | 9/30/2023 | 9/30/2022 | |||||||||||||||||||||||||
Adjusted net income attributable to T. Rowe Price | $ | 499.5 | $ | 430.6 | $ | 466.5 | $ | 1,355.4 | $ | 1,465.2 | |||||||||||||||||||
Less: adjusted net income allocated to outstanding restricted stock and stock unit holders | 11.7 | 10.7 | 11.4 | 32.8 | 34.1 | ||||||||||||||||||||||||
Adjusted net income allocated to common stockholders | $ | 487.8 | $ | 419.9 | $ | 455.1 | $ | 1,322.6 | $ | 1,431.1 |