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
(Nasdaq Global Select Market)
|
Three months ended | Year ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except per-share data) | 12/31/2023 | 12/31/2022 | Change | 9/30/2023 | Change | 12/31/2023 |
12/31/2022 | Change | |||||||||||||||||||||||||||||||||||||||
U.S. GAAP basis | |||||||||||||||||||||||||||||||||||||||||||||||
Investment advisory fees | $ | 1,461.2 | $ | 1,368.3 | 6.8 | % | $ | 1,463.9 | (0.2) | % | $ | 5,747.7 | $ | 5,969.1 | (3.7) | % | |||||||||||||||||||||||||||||||
Capital allocation-based income(1) (2) |
$ | 40.2 | $ | 26.5 | n/m | $ | 66.1 | n/m | $ | 161.9 | $ | (54.3) | n/m | ||||||||||||||||||||||||||||||||||
Net revenues | $ | 1,642.0 | $ | 1,524.2 | 7.7 | % | $ | 1,670.7 | (1.7) | % | $ | 6,460.5 | $ | 6,488.4 | (0.4) | % | |||||||||||||||||||||||||||||||
Operating expenses | $ | 1,254.8 | $ | 1,271.1 | (1.3) | % | $ | 1,089.4 | 15.2 | % | $ | 4,474.3 | $ | 4,114.7 | 8.7 | % | |||||||||||||||||||||||||||||||
Net operating income | $ | 387.2 | $ | 253.1 | 53.0 | % | $ | 581.3 | (33.4) | % | $ | 1,986.2 | $ | 2,373.7 | (16.3) | % | |||||||||||||||||||||||||||||||
Non-operating income (loss)(2) |
$ | 259.7 | $ | 135.7 | n/m | $ | 2.8 | n/m | $ | 504.1 | $ | (425.5) | n/m | ||||||||||||||||||||||||||||||||||
Net income attributable to T. Rowe Price | $ | 437.6 | $ | 266.0 | 64.5 | % | $ | 453.2 | (3.4) | % | $ | 1,788.7 | $ | 1,557.9 | 14.8 | % | |||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.90 | $ | 1.16 | 63.8 | % | $ | 1.97 | (3.6) | % | $ | 7.76 | $ | 6.70 | 15.8 | % | |||||||||||||||||||||||||||||||
Weighted average common shares outstanding assuming dilution | 224.0 | 224.6 | (0.3) | % | 224.8 | (0.4) | % | 224.8 | 227.1 | (1.0) | % | ||||||||||||||||||||||||||||||||||||
Adjusted basis(3) |
|||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 1,150.7 | $ | 1,073.2 | 7.2 | % | $ | 1,061.3 | 8.4 | % | $ | 4,260.7 | $ | 4,087.8 | 4.2 | % | |||||||||||||||||||||||||||||||
Operating expenses, excluding accrued carried interest related compensation | $ | 1,135.5 | $ | 1,039.2 | 9.3 | % | $ | 1,030.8 | 10.2 | % | $ | 4,190.7 | $ | 4,070.2 | 3.0 | % | |||||||||||||||||||||||||||||||
Net operating income | $ | 502.7 | $ | 509.1 | (1.3) | % | $ | 635.9 | (20.9) | % | $ | 2,263.2 | $ | 2,500.5 | (9.5) | % | |||||||||||||||||||||||||||||||
Non-operating income (loss)(2) |
$ | 49.5 | $ | 33.7 | n/m | $ | 28.7 | n/m | $ | 140.8 | $ | (24.4) | n/m | ||||||||||||||||||||||||||||||||||
Net income attributable to T. Rowe Price | $ | 394.7 | $ | 399.6 | (1.2) | % | $ | 499.5 | (21.0) | % | $ | 1,750.1 | $ | 1,864.8 | (6.2) | % | |||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.72 | $ | 1.74 | (1.1) | % | $ | 2.17 | (20.7) | % | $ | 7.59 | $ | 8.02 | (5.4) | % | |||||||||||||||||||||||||||||||
Assets under management (in billions) |
|||||||||||||||||||||||||||||||||||||||||||||||
Average assets under management | $ | 1,374.3 | $ | 1,283.8 | 7.0 | % | $ | 1,393.6 | (1.4) | % | $ | 1,362.3 | $ | 1,398.4 | (2.6) | % | |||||||||||||||||||||||||||||||
Ending assets under management | $ | 1,444.5 | $ | 1,274.7 | 13.3 | % | $ | 1,346.5 | 7.3 | % | $ | 1,444.5 | $ | 1,274.7 | 13.3 | % | |||||||||||||||||||||||||||||||
Investment advisory effective fee rate (bps) | 42.2 | 42.3 | (0.1) | 41.7 | 0.5 | 42.2 | 42.7 | (0.5) |
Three months ended 12/31/2023 |
|||||||||||||||||||||||||||||
(in billions) | Equity | Fixed income, including money market | Multi-asset(1) |
Alternatives(2) |
Total | ||||||||||||||||||||||||
Assets under management at beginning of period | $ | 690.0 | $ | 169.3 | $ | 440.5 | $ | 46.7 | $ | 1,346.5 | |||||||||||||||||||
Net cash flows(3) |
(22.7) | (6.0) | — | 0.4 | (28.3) | ||||||||||||||||||||||||
Net market appreciation (depreciation) and gains (losses)(4) |
76.3 | 6.7 | 42.5 | 0.8 | 126.3 | ||||||||||||||||||||||||
Change during the period | 53.6 | 0.7 | 42.5 | 1.2 | 98.0 | ||||||||||||||||||||||||
Assets under management at December 31, 2023 |
$ | 743.6 | $ | 170.0 | $ | 483.0 | $ | 47.9 | $ | 1,444.5 |
Three months ended | |||||||||||||||||||||||||||||
(in millions) | 12/31/2023 | 12/31/2022 | Change | 9/30/2023 | Change | ||||||||||||||||||||||||
Investment advisory fees | |||||||||||||||||||||||||||||
Equity | $ | 864.3 | $ | 835.7 | 3.4 | % | $ | 885.0 | (2.3) | % | |||||||||||||||||||
Fixed income, including money market | 98.2 | 103.3 | (4.9) | % | 100.9 | (2.7) | % | ||||||||||||||||||||||
Multi-asset | 400.6 | 359.6 | 11.4 | % | 405.5 | (1.2) | % | ||||||||||||||||||||||
Alternatives | 98.1 | 69.7 | 40.7 | % | 72.5 | 35.3 | % | ||||||||||||||||||||||
Total investment advisory fees | $ | 1,461.2 | $ | 1,368.3 | 6.8 | % | $ | 1,463.9 | (0.2) | % | |||||||||||||||||||
Capital allocation-based income(1) |
$ | 40.2 | $ | 26.5 | n/m | $ | 66.1 | n/m | |||||||||||||||||||||
Administrative, distribution, and servicing fees | 140.6 | 129.4 | 8.7 | % | 140.7 | (0.1) | % | ||||||||||||||||||||||
Net revenues | $ | 1,642.0 | $ | 1,524.2 | 7.7 | % | $ | 1,670.7 | (1.7) | % | |||||||||||||||||||
Average AUM (in billions): | |||||||||||||||||||||||||||||
Equity | $ | 704.9 | $ | 676.4 | 4.2 | % | $ | 725.0 | (2.8) | % | |||||||||||||||||||
Fixed income, including money market | 168.4 | 168.8 | (0.2) | % | 169.0 | (0.4) | % | ||||||||||||||||||||||
Multi-asset | 453.6 | 395.2 | 14.8 | % | 453.8 | — | % | ||||||||||||||||||||||
Alternatives | 47.4 | 43.4 | 9.2 | % | 45.8 | 3.5 | % | ||||||||||||||||||||||
Average AUM | $ | 1,374.3 | $ | 1,283.8 | 7.0 | % | $ | 1,393.6 | (1.4) | % | |||||||||||||||||||
Effective Advisory Fee Rate (bps) | 42.2 | 42.3 | (0.1) | 41.7 | 0.5 | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
(in millions) | 12/31/2023 | 12/31/2022 | Change (1) |
9/30/2023 | Change (1) |
||||||||||||||||||||||||
Compensation, benefits, and related costs | $ | 649.4 | $ | 624.5 | 4.0 | % | $ | 617.0 | 5.3 | % | |||||||||||||||||||
Acquisition-related retention agreements | 13.5 | 15.9 | (15.1) | % | 13.7 | (1.5) | % | ||||||||||||||||||||||
Capital allocation-based income compensation(2) |
10.6 | 10.4 | n/m | 19.9 | n/m | ||||||||||||||||||||||||
Supplemental savings plan | 61.9 | 36.9 | n/m | (14.2) | n/m | ||||||||||||||||||||||||
Total compensation and related costs | 735.4 | 687.7 | 6.9 | % | 636.4 | 15.6 | % | ||||||||||||||||||||||
Distribution and servicing | 75.7 | 70.0 | 8.1 | % | 74.9 | 1.1 | % | ||||||||||||||||||||||
Advertising and promotion | 44.4 | 28.2 | 57.4 | % | 21.1 | 110.4 | % | ||||||||||||||||||||||
Product and recordkeeping related costs | 68.1 | 67.8 | 0.4 | % | 73.1 | (6.8) | % | ||||||||||||||||||||||
Technology, occupancy, and facility costs | 171.6 | 148.7 | 15.4 | % | 159.7 | 7.5 | % | ||||||||||||||||||||||
General, administrative, and other | 128.1 | 102.1 | 25.5 | % | 85.7 | 49.5 | % | ||||||||||||||||||||||
Change in fair value of contingent consideration | (9.6) | (35.5) | n/m | — | n/m | ||||||||||||||||||||||||
Acquisition-related amortization and impairment costs | 41.1 | 202.1 | (79.7) | % | 38.5 | 6.8 | % | ||||||||||||||||||||||
Total operating expenses | $ | 1,254.8 | $ | 1,271.1 | (1.3) | % | $ | 1,089.4 | 15.2 | % | |||||||||||||||||||
Total adjusted operating expenses(3) |
$ | 1,150.7 | $ | 1,073.2 | 7.2 | % | $ | 1,061.3 | 8.4 | % | |||||||||||||||||||
(in millions) | Three months ended | ||||||||||||||||
12/31/2023 | 12/31/2022 | 9/30/2023 | |||||||||||||||
Net gains (losses) from non-consolidated T. Rowe Price investment products | |||||||||||||||||
Cash and discretionary investments | |||||||||||||||||
Dividend income | $ | 33.1 | $ | 19.6 | $ | 30.3 | |||||||||||
Market-related gains (losses) and equity in earnings (losses) | 5.4 | 14.1 | 2.2 | ||||||||||||||
Total net gains (losses) from cash and discretionary investments | 38.5 | 33.7 | 32.5 | ||||||||||||||
Seed capital investments | |||||||||||||||||
Dividend income | 0.6 | 0.2 | 0.3 | ||||||||||||||
Market-related gains (losses) and equity in earnings (losses) | 25.3 | 17.4 | (4.5) | ||||||||||||||
Net gains (losses) recognized upon deconsolidation | (0.7) | (3.8) | 0.7 | ||||||||||||||
Investments used to hedge the supplemental savings plan liability | 65.0 | 38.6 | (19.7) | ||||||||||||||
Total net gains (losses) from non-consolidated T. Rowe Price investment products | 128.7 | 86.1 | 9.3 | ||||||||||||||
Other investment income | 12.8 | 10.5 | 21.4 | ||||||||||||||
Net gains (losses) on investments | 141.5 | 96.6 | 30.7 | ||||||||||||||
Net gains (losses) on consolidated sponsored investment portfolios | 119.2 | 44.2 | (24.4) | ||||||||||||||
Other gains (losses), including foreign currency gains (losses) | (1.0) | (5.1) | (3.5) | ||||||||||||||
Non-operating income (loss) | $ | 259.7 | $ | 135.7 | $ | 2.8 | |||||||||||
Year ended | |||||||||||
12/31/2023 | 12/31/2022 | ||||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | |||||||
State income taxes for current year, net of federal income tax benefits(1) |
2.3 | 3.4 | |||||||||
Net (income) losses attributable to redeemable non-controlling interests(2) |
(0.5) | 1.3 | |||||||||
Net excess tax losses (benefits) from stock-based compensation plans activity | 0.1 | (0.4) | |||||||||
Valuation allowance | 3.4 | — | |||||||||
Other items, including valuation allowances | — | 0.3 | |||||||||
Effective income tax rate | 26.3 | % | 25.6 | % | |||||||
Public Relations | Investor Relations | ||||||||||
Jeanne Moore | Linsley Carruth | ||||||||||
410-577-8246 | 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 | Year ended | ||||||||||||||||||||||||||||||||||
Revenues | 12/31/2023 | 12/31/2022 | 9/30/2023 | 12/31/2023 | 12/31/2022 | ||||||||||||||||||||||||||||||
Investment advisory fees | $ | 1,461.2 | $ | 1,368.3 | $ | 1,463.9 | $ | 5,747.7 | $ | 5,969.1 | |||||||||||||||||||||||||
Capital allocation-based income | 40.2 | 26.5 | 66.1 | 161.9 | (54.3) | ||||||||||||||||||||||||||||||
Administrative, distribution, and servicing fees | 140.6 | 129.4 | 140.7 | 550.9 | 573.6 | ||||||||||||||||||||||||||||||
Net revenues | 1,642.0 | 1,524.2 | 1,670.7 | 6,460.5 | 6,488.4 | ||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Compensation, benefits, and related costs | 649.4 | 624.5 | 617.0 | 2,450.7 | 2,405.8 | ||||||||||||||||||||||||||||||
Acquisition-related retention agreements | 13.5 | 15.9 | 13.7 | 55.0 | 70.2 | ||||||||||||||||||||||||||||||
Capital allocation-based income compensation | 10.6 | 10.4 | 19.9 | 44.6 | (22.9) | ||||||||||||||||||||||||||||||
Supplemental savings plan | 61.9 | 36.9 | (14.2) | 123.2 | (132.3) | ||||||||||||||||||||||||||||||
Total compensation and related costs | 735.4 | 687.7 | 636.4 | 2,673.5 | 2,320.8 | ||||||||||||||||||||||||||||||
Distribution and servicing | 75.7 | 70.0 | 74.9 | 289.9 | 301.5 | ||||||||||||||||||||||||||||||
Advertising and promotion | 44.4 | 28.2 | 21.1 | 114.2 | 97.3 | ||||||||||||||||||||||||||||||
Product and recordkeeping related costs | 68.1 | 67.8 | 73.1 | 291.0 | 300.1 | ||||||||||||||||||||||||||||||
Technology, occupancy, and facility costs | 171.6 | 148.7 | 159.7 | 632.6 | 560.5 | ||||||||||||||||||||||||||||||
General, administrative, and other | 128.1 | 102.1 | 85.7 | 421.3 | 412.2 | ||||||||||||||||||||||||||||||
Contingent consideration fair value adjustments | (9.6) | (35.5) | — | (82.4) | (161.2) | ||||||||||||||||||||||||||||||
Acquisition-related amortization and impairment costs | 41.1 | 202.1 | 38.5 | 134.2 | 283.5 | ||||||||||||||||||||||||||||||
Total operating expenses | 1,254.8 | 1,271.1 | 1,089.4 | 4,474.3 | 4,114.7 | ||||||||||||||||||||||||||||||
Net operating income | 387.2 | 253.1 | 581.3 | 1,986.2 | 2,373.7 | ||||||||||||||||||||||||||||||
Non-operating income (loss) | |||||||||||||||||||||||||||||||||||
Net gains (losses) on investments | 141.5 | 96.6 | 30.7 | 355.2 | (204.7) | ||||||||||||||||||||||||||||||
Net gains (losses) on consolidated investment products | 119.2 | 44.2 | (24.4) | 164.6 | (203.5) | ||||||||||||||||||||||||||||||
Other gains (losses) | (1.0) | (5.1) | (3.5) | (15.7) | (17.3) | ||||||||||||||||||||||||||||||
Total non-operating income (loss) | 259.7 | 135.7 | 2.8 | 504.1 | (425.5) | ||||||||||||||||||||||||||||||
Income before income taxes | 646.9 | 388.8 | 584.1 | 2,490.3 | 1,948.2 | ||||||||||||||||||||||||||||||
Provision for income taxes | 173.3 | 99.2 | 144.9 | 654.6 | 498.6 | ||||||||||||||||||||||||||||||
Net income | 473.6 | 289.6 | 439.2 | 1,835.7 | 1,449.6 | ||||||||||||||||||||||||||||||
Less: net income (loss) attributable to redeemable non-controlling interests | 36.0 | 23.6 | (14.0) | 47.0 | (108.3) | ||||||||||||||||||||||||||||||
Net income attributable to T. Rowe Price | 437.6 | 266.0 | 453.2 | 1,788.7 | 1,557.9 | ||||||||||||||||||||||||||||||
Less: net income allocated to outstanding restricted stock and stock unit holders | 11.7 | 6.5 | 10.6 | 44.4 | 36.1 | ||||||||||||||||||||||||||||||
Net income allocated to T. Rowe Price common stockholders | $ | 425.9 | $ | 259.5 | $ | 442.6 | $ | 1,744.3 | $ | 1,521.8 | |||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||||
Basic | $ | 1.91 | $ | 1.16 | $ | 1.98 | $ | 7.78 | $ | 6.73 | |||||||||||||||||||||||||
Diluted | $ | 1.90 | $ | 1.16 | $ | 1.97 | $ | 7.76 | $ | 6.70 | |||||||||||||||||||||||||
Weighted-average common shares | |||||||||||||||||||||||||||||||||||
Outstanding | 223.5 | 223.7 | 224.1 | 224.1 | 226.0 | ||||||||||||||||||||||||||||||
Outstanding assuming dilution | 224.0 | 224.6 | 224.8 | 224.8 | 227.1 | ||||||||||||||||||||||||||||||
Summary of Adjusted Basis(1) |
Three months ended | Year ended | |||||||||||||||||||||||||||||||||
(in millions, except per-share data) | 12/31/2023 | 12/31/2022 | 9/30/2023 | 12/31/2023 | 12/31/2022 | ||||||||||||||||||||||||||||||
Operating expenses | $ | 1,150.7 | $ | 1,073.2 | $ | 1,061.3 | $ | 4,260.7 | $ | 4,087.8 | |||||||||||||||||||||||||
Operating expenses, excluding accrued carried interest related compensation | $ | 1,135.5 | $ | 1,039.2 | $ | 1,030.8 | $ | 4,190.7 | $ | 4,070.2 | |||||||||||||||||||||||||
Net operating income | $ | 502.7 | $ | 509.1 | $ | 635.9 | $ | 2,263.2 | $ | 2,500.5 | |||||||||||||||||||||||||
Non-operating income (loss) | $ | 49.5 | $ | 33.7 | $ | 28.7 | $ | 140.8 | $ | (24.4) | |||||||||||||||||||||||||
Net income attributable to T. Rowe Price | $ | 394.7 | $ | 399.6 | $ | 499.5 | $ | 1,750.1 | $ | 1,864.8 | |||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.72 | $ | 1.74 | $ | 2.17 | $ | 7.59 | $ | 8.02 | |||||||||||||||||||||||||
(1) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release. |
Assets Under Management | Year ended 12/31/2023 |
||||||||||||||||||||||||||||
(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) |
(85.4) | (6.8) | 9.1 | 1.3 | (81.8) | ||||||||||||||||||||||||
Net market appreciation and gains(4) |
164.8 | 9.8 | 73.8 | 3.2 | 251.6 | ||||||||||||||||||||||||
Change during the period | 79.4 | 3.0 | 82.9 | 4.5 | 169.8 | ||||||||||||||||||||||||
Assets under management at December 31, 2023 |
$ | 743.6 | $ | 170.0 | $ | 483.0 | $ | 47.9 | $ | 1,444.5 |
Net Revenues | Year ended | ||||||||||||||||
(in millions) | 12/31/2023 | 12/31/2022 | % Change | ||||||||||||||
Investment advisory fees | |||||||||||||||||
Equity | $ | 3,445.5 | $ | 3,759.7 | (8.4) | % | |||||||||||
Fixed income, including money market | 401.5 | 427.4 | (6.1) | % | |||||||||||||
Multi-asset | 1,583.4 | 1,508.9 | 4.9 | % | |||||||||||||
Alternatives | 317.3 | 273.1 | 16.2 | % | |||||||||||||
Total investment advisory fees | $ | 5,747.7 | $ | 5,969.1 | (3.7) | % | |||||||||||
Average AUM (in billions): | |||||||||||||||||
Equity | $ | 705.2 | $ | 763.6 | (7.6) | % | |||||||||||
Fixed income, including money market | 169.3 | 173.4 | (2.4) | % | |||||||||||||
Multi-asset | 442.3 | 418.7 | 5.6 | % | |||||||||||||
Alternatives | 45.5 | 42.7 | 6.6 | % | |||||||||||||
Average AUM | $ | 1,362.3 | $ | 1,398.4 | (2.6) | % | |||||||||||
Non-Operating Income (Loss) | |||||||||||
(in millions) | Year ended | ||||||||||
12/31/2023 | 12/31/2022 | ||||||||||
Net gains (losses) from non-consolidated T. Rowe Price investment products | |||||||||||
Cash and discretionary investments | |||||||||||
Dividend income | $ | 109.1 | $ | 34.7 | |||||||
Market-related gains (losses) and equity in earnings (losses) | 24.5 | (59.1) | |||||||||
Total net gains (losses) from cash and discretionary investments | 133.6 | (24.4) | |||||||||
Seed capital investments | |||||||||||
Dividend income | 1.8 | 0.8 | |||||||||
Market-related gains (losses) and equity in earnings (losses) | 50.3 | (60.1) | |||||||||
Net gains recognized upon deconsolidation | — | 3.0 | |||||||||
Investments used to hedge the supplemental savings plan liability | 123.6 | (139.4) | |||||||||
Total net gains (losses) from non-consolidated T. Rowe Price investment products | 309.3 | (220.1) | |||||||||
Other investment income | 45.9 | 15.4 | |||||||||
Net gains (losses) on investments | 355.2 | (204.7) | |||||||||
Net gains (losses) on consolidated sponsored investment portfolios | 164.6 | (203.5) | |||||||||
Other losses, including foreign currency losses | (15.7) | (17.3) | |||||||||
Non-operating income (loss) | $ | 504.1 | $ | (425.5) | |||||||
Year ended | |||||||||||||||||||||||
12/31/2023 | |||||||||||||||||||||||
(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) | $ | 1,788.7 | $ | 153.5 | $ | (106.5) | $ | 1,835.7 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation, amortization and impairments of property, equipment and software | 254.8 | — | — | 254.8 | |||||||||||||||||||
Amortization and impairment of acquisition-related assets and retention agreements | 226.8 | — | — | 226.8 | |||||||||||||||||||
Fair value remeasurement of contingent liability | (82.4) | — | — | (82.4) | |||||||||||||||||||
Stock-based compensation expense | 265.6 | — | — | 265.6 | |||||||||||||||||||
Net (gains) losses recognized on investments | (567.3) | — | 106.5 | (460.8) | |||||||||||||||||||
Net redemptions in sponsored investment products used to economically hedge supplemental savings plan liability | (10.3) | — | 66.4 | 56.1 | |||||||||||||||||||
Net change in trading securities held by consolidated sponsored investment products | — | (1,070.3) | — | (1,070.3) | |||||||||||||||||||
Other changes | 182.7 | 27.9 | (17.0) | 193.6 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 2,058.6 | (888.9) | 49.4 | 1,219.1 | |||||||||||||||||||
Net cash provided by (used in) investing activities | (310.2) | (56.8) | 495.2 | 128.2 | |||||||||||||||||||
Net cash provided by (used in) financing activities | (1,437.4) | 903.4 | (544.6) | (1,078.6) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment products | — | 0.4 | — | 0.4 | |||||||||||||||||||
Net change in cash and cash equivalents during period | 311.0 | (41.9) | — | 269.1 | |||||||||||||||||||
Cash and cash equivalents at beginning of year | 1,755.6 | 119.1 | — | 1,874.7 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 2,066.6 | $ | 77.2 | $ | — | $ | 2,143.8 |
Unaudited Condensed Consolidated Balance Sheet Information (in millions) | As of | ||||||||||
12/31/2023 | 12/31/2022 | ||||||||||
Cash and cash equivalents | $ | 2,066.6 | $ | 1,755.6 | |||||||
Accounts receivable and accrued revenue | 807.9 | 748.7 | |||||||||
Investments | 2,554.7 | 2,539.2 | |||||||||
Assets of consolidated sponsored investment products | 1,959.3 | 1,603.4 | |||||||||
Operating lease assets | 241.1 | 279.4 | |||||||||
Property, equipment and software, net | 806.6 | 755.7 | |||||||||
Goodwill and intangible assets | 3,150.1 | 3,272.6 | |||||||||
Other assets | 692.5 | 688.7 | |||||||||
Total assets | 12,278.8 | 11,643.3 | |||||||||
Supplemental savings plan liability | 895.0 | 761.2 | |||||||||
Total other liabilities, includes $54.2 at December 31, 2023, and $89.1 at December 31, 2022, from consolidated sponsored investment products |
1,092.6 | 1,195.2 | |||||||||
Non-controlling interests* | 786.1 | 847.4 | |||||||||
Stockholders' equity attributable to T. Rowe Price Group, Inc., 223.9 common shares outstanding at
December 31, 2023 and 224.3 common shares outstanding at December 31, 2022
|
$ | 9,505.1 | $ | 8,839.5 |
Three months ended | Year ended | ||||||||||||||||||||||
Investments in affiliated private investment funds - carried interest | 12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||||||||
Balance at beginning of period | $ | 578.2 | $ | 508.3 | $ | 467.8 | $ | 609.8 | |||||||||||||||
Capital allocation-based income: | |||||||||||||||||||||||
Change in accrued carried interest | 51.1 | 84.8 | 223.2 | 43.7 | |||||||||||||||||||
Acquisition-related amortization and impairments | (10.9) | (58.3) | (61.3) | (98.0) | |||||||||||||||||||
Net distributions | (98.5) | (67.0) | (109.8) | (87.7) | |||||||||||||||||||
Balance at end of period |
$ | 519.9 | $ | 467.8 | $ | 519.9 | $ | 467.8 |
Three months ended | Year ended | ||||||||||||||||||||||
Non-controlling interests (NCI) in consolidated entities | 12/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||||||||
Balance at beginning of period | $ | 221.5 | $ | 207.0 | $ | 190.7 | $ | 248.7 | |||||||||||||||
Capital allocation-based income compensation: | |||||||||||||||||||||||
Change in accrued carried interest compensation | 15.2 | 34.0 | 70.0 | 17.6 | |||||||||||||||||||
Acquisition-related amortization and impairments | (4.6) | (23.6) | (25.4) | (40.5) | |||||||||||||||||||
Net distributions | (40.1) | (26.7) | (43.3) | (35.1) | |||||||||||||||||||
Balance at end of period |
$ | 192.0 | $ | 190.7 | $ | 192.0 | $ | 190.7 |
Three months ended 12/31/2023 |
|||||||||||||||||||||||||||||||||||
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) | $ | 1,254.8 | $ | 387.2 | $ | 259.7 | $ | 173.3 | $ | 437.6 | $ | 1.90 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
4.6 | 6.3 | — | 1.7 | 4.6 | 0.02 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(13.5) | 13.5 | — | 3.6 | 9.9 | 0.04 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
9.6 | (9.6) | — | (2.6) | (7.0) | (0.03) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(41.1) | 41.1 | — | 11.1 | 30.0 | 0.14 | |||||||||||||||||||||||||||||
Total acquisition-related | (40.4) | 51.3 | — | 13.8 | 37.5 | 0.17 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
(61.9) | 61.9 | (65.0) | (0.8) | (2.3) | (0.01) | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(1.8) | 2.3 | (119.2) | (21.8) | (59.1) | (0.26) | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | (26.0) | (7.0) | (19.0) | (0.08) | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 1,150.7 | $ | 502.7 | $ | 49.5 | $ | 157.5 | $ | 394.7 | $ | 1.72 |
Three months ended 12/31/2022 |
|||||||||||||||||||||||||||||||||||
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) | $ | 1,271.1 | $ | 253.1 | $ | 135.7 | $ | 99.2 | $ | 266.0 | $ | 1.16 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
23.6 | 34.7 | — | 9.0 | 25.7 | 0.11 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(15.9) | 15.9 | — | 3.4 | 12.5 | 0.05 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
35.5 | (35.5) | — | (7.6) | (27.9) | (0.12) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(202.1) | 202.1 | — | 53.1 | 149.0 | 0.65 | |||||||||||||||||||||||||||||
Transaction costs(2) (General, admin and other) |
— | — | — | — | — | — | |||||||||||||||||||||||||||||
Total acquisition-related | (158.9) | 217.2 | — | 57.9 | 159.3 | 0.69 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
(36.9) | 36.9 | (38.6) | (0.6) | (1.1) | (0.01) | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(2.1) | 1.9 | (44.2) | (6.9) | (11.8) | (0.05) | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | (19.2) | (6.4) | (12.8) | (0.05) | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 1,073.2 | $ | 509.1 | $ | 33.7 | $ | 143.2 | $ | 399.6 | $ | 1.74 |
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: | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
— | — | — | — | — | — | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(38.5) | 38.5 | — | 11.7 | 26.8 | 0.12 | |||||||||||||||||||||||||||||
Total acquisition-related | (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 |
Year ended 12/31/2023 |
|||||||||||||||||||||||||||||||||||
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) | $ | 4,474.3 | $ | 1,986.2 | $ | 504.1 | $ | 654.6 | $ | 1,788.7 | $ | 7.76 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
25.4 | 35.9 | — | 7.9 | 28.0 | 0.12 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(55.0) | 55.0 | — | 10.8 | 44.2 | 0.19 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
82.4 | (82.4) | — | (10.6) | (71.8) | (0.31) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(134.2) | 134.2 | — | 28.8 | 105.4 | 0.46 | |||||||||||||||||||||||||||||
Total acquisition-related | (81.4) | 142.7 | — | 36.9 | 105.8 | 0.46 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
(123.2) | 123.2 | (123.6) | 0.5 | (.9) | — | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(9.0) | 11.1 | (164.6) | (22.3) | (84.2) | (0.37) | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | (75.1) | (15.8) | (59.3) | (0.26) | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 4,260.7 | $ | 2,263.2 | $ | 140.8 | $ | 653.9 | $ | 1,750.1 | $ | 7.59 |
Year ended 12/31/2022 | |||||||||||||||||||||||||||||||||||
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) | $ | 4,114.7 | $ | 2,373.7 | $ | (425.5) | $ | 498.6 | $ | 1,557.9 | $ | 6.70 | |||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||
Acquisition-related: | |||||||||||||||||||||||||||||||||||
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs) |
40.5 | 57.5 | — | 15.5 | 42.0 | 0.18 | |||||||||||||||||||||||||||||
Acquisition-related retention arrangements(1) (Compensation and related costs) |
(70.2) | 70.2 | — | 18.9 | 51.3 | 0.22 | |||||||||||||||||||||||||||||
Contingent consideration(1) |
161.2 | (161.2) | — | (43.3) | (117.9) | (0.52) | |||||||||||||||||||||||||||||
Intangible assets amortization and impairments(1) |
(283.5) | 283.5 | — | 76.2 | 207.3 | 0.89 | |||||||||||||||||||||||||||||
Transaction costs(2) (General, admin and other) |
(0.9) | 0.9 | — | 0.2 | 0.7 | 0.01 | |||||||||||||||||||||||||||||
Total acquisition-related | (152.9) | 250.9 | — | 67.5 | 183.4 | 0.78 | |||||||||||||||||||||||||||||
Supplemental savings plan liability(3) (Compensation and related costs) |
132.3 | (132.3) | 139.4 | 1.9 | 5.2 | 0.02 | |||||||||||||||||||||||||||||
Consolidated T. Rowe Price investment products(4) |
(6.3) | 8.3 | 203.5 | 27.8 | 75.7 | 0.33 | |||||||||||||||||||||||||||||
Other non-operating income(5) |
— | — | 58.2 | 15.5 | 42.7 | 0.19 | |||||||||||||||||||||||||||||
Adjusted Non-GAAP Basis | $ | 4,087.8 | $ | 2,500.6 | $ | (24.4) | $ | 611.3 | $ | 1,864.9 | $ | 8.02 |
Three months ended | Year ended | ||||||||||||||||||||||||||||
12/31/2023 | 12/31/2022 | 9/30/2023 | 12/31/2023 | 12/31/2022 | |||||||||||||||||||||||||
Adjusted net income attributable to T. Rowe Price | $ | 394.7 | $ | 399.6 | $ | 499.5 | $ | 1,750.1 | $ | 1,864.8 | |||||||||||||||||||
Less: adjusted net income allocated to outstanding restricted stock and stock unit holders | 10.6 | 9.6 | 11.7 | 43.4 | 43.3 | ||||||||||||||||||||||||
Adjusted net income allocated to common stockholders | $ | 384.1 | $ | 390.0 | $ | 487.8 | $ | 1,706.7 | $ | 1,821.5 |