Company Quick10K Filing
Affiliated Managers Group
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 58 $5,347
10-Q 2019-11-01 Quarter: 2019-09-30
10-Q 2019-08-01 Quarter: 2019-06-30
10-Q 2019-05-09 Quarter: 2019-03-31
10-K 2019-02-22 Annual: 2018-12-31
10-Q 2018-11-01 Quarter: 2018-09-30
10-Q 2018-08-02 Quarter: 2018-06-30
10-Q 2018-05-04 Quarter: 2018-03-31
10-K 2018-02-23 Annual: 2017-12-31
10-Q 2017-11-02 Quarter: 2017-09-30
10-Q 2017-08-03 Quarter: 2017-06-30
10-Q 2017-05-05 Quarter: 2017-03-31
10-K 2017-02-24 Annual: 2016-12-31
10-Q 2016-11-07 Quarter: 2016-09-30
10-Q 2016-08-05 Quarter: 2016-06-30
10-Q 2016-05-10 Quarter: 2016-03-31
10-K 2016-02-25 Annual: 2015-12-31
10-Q 2015-11-09 Quarter: 2015-09-30
10-Q 2015-08-04 Quarter: 2015-06-30
10-Q 2015-05-05 Quarter: 2015-03-31
10-K 2015-02-23 Annual: 2014-12-31
10-Q 2014-11-06 Quarter: 2014-09-30
10-Q 2014-08-06 Quarter: 2014-06-30
10-Q 2014-05-06 Quarter: 2014-03-31
10-K 2014-02-27 Annual: 2013-12-31
10-Q 2013-11-12 Quarter: 2013-09-30
10-Q 2013-08-06 Quarter: 2013-06-30
10-Q 2013-05-07 Quarter: 2013-03-31
10-Q 2012-11-06 Quarter: 2012-09-30
10-Q 2012-08-08 Quarter: 2012-06-30
10-Q 2012-05-08 Quarter: 2012-03-31
10-K 2012-02-23 Annual: 2011-12-31
10-Q 2011-11-04 Quarter: 2011-09-30
10-Q 2011-08-09 Quarter: 2011-06-30
10-Q 2011-05-10 Quarter: 2011-03-31
10-K 2011-03-01 Annual: 2010-12-31
10-Q 2010-11-09 Quarter: 2010-09-30
10-Q 2010-08-09 Quarter: 2010-06-30
10-Q 2010-05-10 Quarter: 2010-03-31
10-K 2010-03-01 Annual: 2009-12-31
8-K 2020-02-03 Earnings, Other Events, Exhibits
8-K 2019-10-28 Earnings, Other Events, Exhibits
8-K 2019-07-29 Earnings, Other Events, Exhibits
8-K 2019-05-29 Shareholder Vote
8-K 2019-05-06 Earnings, Other Events, Exhibits
8-K 2019-05-01 Officers, Exhibits
8-K 2019-03-21 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2019-03-20 Officers, Exhibits
8-K 2019-02-04 Earnings, Other Events, Exhibits
8-K 2019-02-01 Officers, Exhibits
8-K 2019-01-18 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-10-29 Earnings, Other Events, Exhibits
8-K 2018-07-30 Earnings, Other Events, Exhibits
8-K 2018-06-12 Shareholder Vote
8-K 2018-05-29 Regulation FD, Exhibits
8-K 2018-05-25 Officers, Regulation FD, Other Events, Exhibits
8-K 2018-04-30 Earnings, Other Events, Exhibits
8-K 2018-03-08 Enter Agreement, Leave Agreement, Off-BS Arrangement, Exhibits
8-K 2018-01-29 Earnings, Other Events, Exhibits
AMG 2019-09-30
Part I-Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part Ii-Other Information
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 amg09302019exhibit311.htm
EX-31.2 amg09302019exhibit312.htm
EX-32.1 amg09302019exhibit321.htm
EX-32.2 amg09302019exhibit322.htm

Affiliated Managers Group Earnings 2019-09-30

AMG 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
APO 6,711 7,348 4,807 1,717 0 833 979 8,031 0% 8.2 11%
MORN 6,229 1,572 569 1,057 635 175 329 5,845 60% 17.7 11%
AMG 5,347 7,728 3,175 2,301 0 150 283 6,779 0% 23.9 2%
EV 4,901 4,219 2,743 1,680 0 422 615 4,811 0% 7.8 10%
JHG 4,080 6,860 1,886 2,182 0 418 642 3,667 0% 5.7 6%
LAZ 4,066 5,507 4,790 2,658 0 393 620 3,505 0% 5.7 7%
EVR 3,835 1,940 965 2,116 0 427 635 3,450 0% 5.4 22%
LM 3,111 7,846 3,450 2,861 0 221 171 4,831 0% 28.3 3%
FII 3,080 1,688 574 1,244 0 242 347 2,899 0% 8.4 14%
HLI 2,912 1,393 500 1,115 316 172 278 2,739 28% 9.9 12%

Document
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Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
(Mark One)
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to          
Commission File Number 001-13459
 
amglogoa54.jpg
AFFILIATED MANAGERS GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
04-3218510
(State or other jurisdiction
of incorporation or organization)
 
(IRS Employer Identification Number)
777 South Flagler Drive, West Palm Beach, Florida 33401
(Address of principal executive offices)
(800345-1100
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock ($0.01 par value)
 
AMG
 
New York Stock Exchange
5.875% Junior Subordinated Notes due 2059
 
MGR
 
New York Stock Exchange


Table of Contents

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer 
 
Non-accelerated filer 

 
Smaller reporting company
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
There were 49,272,159 shares of the registrant’s common stock outstanding on October 30, 2019.
 


Table of Contents

FORM 10-Q
TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Table of Contents

PART I—FINANCIAL INFORMATION
Item 1.
Financial Statements
AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
(unaudited)
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2019
 
2018
 
2019
Consolidated revenue
$
601.3

 
$
549.0

 
$
1,813.9

 
$
1,684.0

 
 
 
 
 
 
 
 
Consolidated expenses:
 
 
 
 
 
 
 
Compensation and related expenses
253.6

 
222.0

 
761.3

 
708.2

Selling, general and administrative
102.8

 
91.5

 
314.4

 
283.3

Intangible amortization and impairments
30.1

 
21.1

 
76.5

 
72.0

Interest expense
19.6

 
19.5

 
62.6

 
57.4

Depreciation and other amortization
5.3

 
6.2

 
16.5

 
16.7

Other expenses (net)
10.2

 
13.1

 
33.4

 
36.2

Total consolidated expenses
421.6

 
373.4

 
1,264.7

 
1,173.8

 
 
 
 
 
 
 
 
Equity method income (loss) (net)
59.7

 
10.3

 
191.3

 
(318.5
)
 
 
 
 
 
 
 
 
Investment and other income
11.0

 
6.7

 
36.7

 
22.0

Income before income taxes
250.4

 
192.6

 
777.2

 
213.7

 
 
 
 
 
 
 
 
Income tax expense
48.5

 
30.5

 
146.1

 
4.4

Net income
201.9

 
162.1

 
631.1

 
209.3

 
 
 
 
 
 
 
 
Net income (non-controlling interests)
(77.0
)
 
(75.8
)
 
(236.2
)
 
(216.1
)
Net income (loss) (controlling interest)
$
124.9

 
$
86.3

 
$
394.9

 
$
(6.8
)
 
 
 
 
 
 
 
 
Average shares outstanding (basic)
53.1

 
50.4

 
53.9

 
51.1

Average shares outstanding (diluted)
55.4

 
50.4

 
56.3

 
51.1

 
 
 
 
 
 
 
 
Earnings (loss) per share (basic)
$
2.35

 
$
1.71

 
$
7.32

 
$
(0.13
)
Earnings (loss) per share (diluted)
$
2.34

 
$
1.71

 
$
7.27

 
$
(0.13
)
The accompanying notes are an integral part of the Consolidated Financial Statements.

2

Table of Contents

AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2019
 
2018
 
2019
Net income
$
201.9

 
$
162.1

 
$
631.1

 
$
209.3

Other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Foreign currency translation loss
(56.4
)
 
(37.6
)
 
(47.5
)
 
(24.9
)
Change in net realized and unrealized gain (loss) on derivative financial instruments
(0.0)

 
0.5

 
0.3

 
1.0

Other comprehensive loss, net of tax
(56.4
)
 
(37.1
)
 
(47.2
)
 
(23.9
)
Comprehensive income
145.5

 
125.0

 
583.9

 
185.4

Comprehensive income (non-controlling interests)
(74.1
)
 
(68.6
)
 
(227.4
)
 
(208.2
)
Comprehensive income (loss) (controlling interest)
$
71.4

 
$
56.4

 
$
356.5

 
$
(22.8
)
The accompanying notes are an integral part of the Consolidated Financial Statements.

3

Table of Contents

AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
 
December 31,
2018
 
September 30,
2019
Assets
 
 
 
Cash and cash equivalents
$
565.5

 
$
402.5

Receivables
400.6

 
485.1

Investments in marketable securities
119.3

 
30.6

Goodwill
2,633.4

 
2,629.8

Acquired client relationships (net)
1,309.9

 
1,222.6

Equity method investments in Affiliates (net)
2,791.0

 
2,359.7

Fixed assets (net)
104.3

 
92.9

Other investments
201.1

 
205.2

Other assets
94.0

 
250.6

Total assets
$
8,219.1

 
$
7,679.0

Liabilities and Equity
 
 
 
Payables and accrued liabilities
$
746.6

 
$
648.0

Debt
1,829.6

 
1,792.6

Deferred income tax liability (net)
511.6

 
411.6

Other liabilities
162.7

 
346.5

Total liabilities
3,250.5

 
3,198.7

Commitments and contingencies (Note 8)


 


Redeemable non-controlling interests
833.7

 
847.1

Equity:
 
 
 
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares outstanding in 2018 and 2019)
0.6

 
0.6

Additional paid-in capital
835.6

 
742.6

Accumulated other comprehensive loss
(109.0
)
 
(125.0
)
Retained earnings
3,876.8

 
3,813.6

 
4,604.0

 
4,431.8

Less: Treasury stock, at cost (6.5 shares in 2018 and 8.8 shares in 2019)
(1,146.6
)
 
(1,361.8
)
Total stockholders' equity
3,457.4

 
3,070.0

Non-controlling interests
677.5

 
563.2

Total equity
4,134.9

 
3,633.2

Total liabilities and equity
$
8,219.1

 
$
7,679.0

The accompanying notes are an integral part of the Consolidated Financial Statements.

4

Table of Contents

AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions)
(unaudited)
Three Months Ended September 30, 2018
Total Stockholders’ Equity
 
 
 
 
 
Common
Stock
 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Treasury
Stock at
Cost
 
Non-
controlling
Interests
 
Total
Equity
June 30, 2018
$
0.6

 
$
679.7

 
$
(6.7
)
 
$
3,935.5

 
$
(969.8
)
 
$
718.1

 
$
4,357.4

Net income

 

 

 
124.9

 

 
77.0

 
201.9

Other comprehensive loss

 

 
(53.4
)
 

 

 
(3.0
)
 
(56.4
)
Share-based compensation

 
11.7

 

 

 

 

 
11.7

Common stock issued under share-based incentive plans

 
(5.4
)
 

 

 
8.7

 

 
3.3

Share repurchases

 

 

 

 
(113.2
)
 

 
(113.2
)
Dividends ($0.30 per share)

 

 

 
(16.3
)
 

 

 
(16.3
)
Affiliate equity activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate equity compensation

 
6.1

 

 

 

 
9.9

 
16.0

Issuances

 
(0.6
)
 

 

 

 
0.8

 
0.2

Repurchases

 
3.2

 

 

 

 
(6.1
)
 
(2.9
)
Changes in redemption value of Redeemable non-controlling interests

 
13.2

 

 

 

 

 
13.2

Transfers to Redeemable non-controlling interests

 

 

 

 

 
(6.6
)
 
(6.6
)
Capital contributions by Affiliate equity holders

 

 

 

 

 
1.2

 
1.2

Distributions to non-controlling interests

 

 

 

 

 
(88.3
)
 
(88.3
)
September 30, 2018
$
0.6

 
$
707.9

 
$
(60.1
)
 
$
4,044.1

 
$
(1,074.3
)
 
$
703.0

 
$
4,321.2

Three Months Ended September 30, 2019
Total Stockholders’ Equity
 
 
 
 
 
Common
Stock
 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Treasury
Stock at
Cost
 
Non-
controlling
Interests
 
Total
Equity
June 30, 2019
$
0.6

 
$
835.8

 
$
(95.1
)
 
$
3,743.7

 
$
(1,259.7
)
 
$
600.5

 
$
3,825.8

Net income

 

 

 
86.3

 

 
75.8

 
162.1

Other comprehensive loss

 

 
(29.9
)
 

 

 
(7.2
)
 
(37.1
)
Share-based compensation

 
11.7

 

 

 

 

 
11.7

Common stock issued under share-based incentive plans

 
(0.1
)
 

 

 
0.4

 

 
0.3

Share repurchases

 
(7.5
)
 

 

 
(102.5
)
 

 
(110.0
)
Dividends ($0.32 per share)

 

 

 
(16.4
)
 

 

 
(16.4
)
Affiliate equity activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate equity compensation

 
2.3

 

 

 

 
6.9

 
9.2

Issuances

 
(2.0
)
 

 

 

 
2.3

 
0.3

Repurchases

 
3.9

 

 

 

 

 
3.9

Changes in redemption value of Redeemable non-controlling interests

 
(101.5
)
 

 

 

 

 
(101.5
)
Transfers to Redeemable non-controlling interests

 

 

 

 

 
(31.2
)
 
(31.2
)
Distributions to non-controlling interests

 

 

 

 

 
(83.9
)
 
(83.9
)
September 30, 2019
$
0.6

 
$
742.6

 
$
(125.0
)
 
$
3,813.6

 
$
(1,361.8
)
 
$
563.2

 
$
3,633.2

The accompanying notes are an integral part of the Consolidated Financial Statements.





5

Table of Contents

AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)
(in millions)
(unaudited)
Nine Months Ended September 30, 2018
Total Stockholders’ Equity
 
 
 
 
 
Common
Stock
 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Treasury
Stock at
Cost
 
Non-
controlling
Interests
 
Total
Equity
December 31, 2017
$
0.6

 
$
808.6

 
$
(21.8
)
 
$
3,698.5

 
$
(663.7
)
 
$
756.3

 
$
4,578.5

Net income

 

 

 
394.9

 

 
236.2

 
631.1

Other comprehensive loss

 

 
(38.3
)
 

 

 
(8.9
)
 
(47.2
)
Share-based compensation

 
33.5

 

 

 

 

 
33.5

Common stock issued under share-based incentive plans

 
(8.9
)
 

 

 
3.4

 

 
(5.5
)
Share repurchases

 

 

 

 
(414.0
)
 

 
(414.0
)
Dividends ($0.90 per share)

 

 

 
(49.3
)
 

 

 
(49.3
)
Affiliate equity activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate equity compensation

 
10.9

 

 

 

 
32.8

 
43.7

Issuances

 
(5.4
)
 

 

 

 
12.6

 
7.2

Repurchases

 
17.3

 

 

 

 
(6.1
)
 
11.2

Changes in redemption value of Redeemable non-controlling interests

 
(148.1
)
 

 

 

 

 
(148.1
)
Transfers to Redeemable non-controlling interests

 

 

 

 

 
(30.0
)
 
(30.0
)
Capital contributions by Affiliate equity holders

 

 

 

 

 
3.7

 
3.7

Distributions to non-controlling interests

 

 

 

 

 
(293.6
)
 
(293.6
)
September 30, 2018
$
0.6

 
$
707.9

 
$
(60.1
)
 
$
4,044.1

 
$
(1,074.3
)
 
$
703.0

 
$
4,321.2

Nine Months Ended September 30, 2019
Total Stockholders’ Equity
 
 
 
 
 
Common
Stock
 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Treasury
Stock at
Cost
 
Non-
controlling
Interests
 
Total
Equity
December 31, 2018
$
0.6

 
$
835.6

 
$
(109.0
)
 
$
3,876.8

 
$
(1,146.6
)
 
$
677.5

 
$
4,134.9

Impact of adoption of new accounting standards (see Note 19)

 

 

 
(6.6
)
 

 

 
(6.6
)
Net income (loss)

 

 

 
(6.8
)
 

 
216.1

 
209.3

Other comprehensive loss

 

 
(16.0
)
 

 

 
(7.9
)
 
(23.9
)
Share-based compensation

 
30.7

 

 

 

 

 
30.7

Common stock issued under share-based incentive plans

 
(34.0
)
 

 

 
28.0

 

 
(6.0
)
Share repurchases

 
(7.5
)
 

 

 
(243.2
)
 

 
(250.7
)
Dividends ($0.96 per share)

 

 

 
(49.8
)
 

 

 
(49.8
)
Issuance costs and other

 
0.2

 

 

 

 

 
0.2

Affiliate equity activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate equity compensation

 
7.3

 

 

 

 
24.9

 
32.2

Issuances

 
(3.4
)
 

 

 

 
14.4

 
11.0

Repurchases

 
11.6

 

 

 

 

 
11.6

Changes in redemption value of Redeemable non-controlling interests

 
(97.9
)
 

 

 

 

 
(97.9
)
Transfers to Redeemable non-controlling interests

 

 

 

 

 
(85.6
)
 
(85.6
)
Capital contributions by Affiliate equity holders

 

 

 

 

 
0.4

 
0.4

Distributions to non-controlling interests

 
 
 

 

 

 
(276.6
)
 
(276.6
)
September 30, 2019
$
0.6

 
$
742.6

 
$
(125.0
)
 
$
3,813.6

 
$
(1,361.8
)
 
$
563.2

 
$
3,633.2

The accompanying notes are an integral part of the Consolidated Financial Statements.

6

Table of Contents

AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 
For the Nine Months Ended September 30,
 
2018
 
2019
Cash flow from (used in) operating activities:
 
 
 
Net income
$
631.1

 
$
209.3

Adjustments to reconcile Net income to cash flow from (used in) operating activities:
 
 
 
Intangible amortization and impairments
76.5

 
72.0

Depreciation and other amortization
16.5

 
16.7

Deferred income tax expense (benefit)
31.1

 
(77.0
)
Equity method (income) loss (net)
(191.3
)
 
318.5

Distributions of earnings received from equity method investments
410.3

 
210.4

Share-based compensation and Affiliate equity expense
77.2

 
62.9

Other non-cash items
(15.9
)
 
(11.5
)
Changes in assets and liabilities:
 
 
 
Purchases of securities by consolidated Affiliate sponsored investment products
(70.4
)
 

Sales of securities by consolidated Affiliate sponsored investment products
29.6

 
5.5

Increase in receivables
(81.6
)
 
(91.5
)
Increase in other assets
(10.2
)
 
(4.0
)
Decrease in payables, accrued liabilities and other liabilities
(26.7
)
 
(94.7
)
Cash flow from operating activities
876.2

 
616.6

Cash flow from (used in) investing activities:
 
 
 
Investments in Affiliates
(7.3
)
 
(162.3
)
Divestments of Affiliates

 
28.8

Purchase of fixed assets
(13.5
)
 
(6.4
)
Purchase of investment securities
(26.8
)
 
(33.1
)
Sale of investment securities
26.7

 
33.1

Cash flow used in investing activities
(20.9
)
 
(139.9
)
Cash flow from (used in) financing activities:
 
 
 
Borrowings of debt
590.0

 
470.7

Repayments of debt
(601.5
)
 
(510.0
)
Repurchases of common stock (net)
(418.0
)
 
(223.4
)
Dividends paid on common stock
(48.6
)
 
(49.6
)
Distributions to non-controlling interests
(293.6
)
 
(276.6
)
Affiliate equity issuances and repurchases (net)
(98.0
)
 
(74.8
)
Other financing items
28.0

 
29.5

Cash flow used in financing activities
(841.7
)
 
(634.2
)
Effect of foreign currency exchange rate changes on cash and cash equivalents
(5.0
)
 
(2.9
)
Net increase (decrease) in cash and cash equivalents
8.6

 
(160.4
)
Cash and cash equivalents at beginning of period
439.5

 
565.5

Effect of deconsolidation of Affiliate sponsored investment products

 
(2.6
)
Cash and cash equivalents at end of period
$
448.1

 
$
402.5

The accompanying notes are an integral part of the Consolidated Financial Statements.

7

Table of Contents
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)



1.
Basis of Presentation and Use of Estimates
The Consolidated Financial Statements of Affiliated Managers Group, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for full year financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair statement of the Company’s interim financial position and results of operations have been included and all intercompany balances and transactions have been eliminated. Certain reclassifications have been made to the prior period’s financial statements to conform to the current period’s presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for any other period or for the full year. The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 includes additional information about its operations, financial position and accounting policies, and should be read in conjunction with this Quarterly Report on Form 10-Q.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
All amounts in these notes, except per share data in the text and tables herein, are stated in millions unless otherwise indicated.
2.
Accounting Standards and Policies
Recently Adopted Accounting Standards
Effective January 1, 2019, the Company adopted the following new Accounting Standard Updates (“ASUs”):

ASU 2016-02, Leases (and related ASUs);
ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; and
ASU 2014-09, Revenue from Contracts with Customers (and related ASUs, effective for the Company’s Affiliates accounted for under the equity method)

The adoption of ASU 2016-02 was the only ASU that had a significant impact on the Company’s Consolidated Financial Statements.

On January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective method and, as a result, recorded a lease liability of $190.8 million and after certain reclassifications, primarily related to accrued lease payments and unamortized lease incentives, a right-of-use asset of $163.6 million. Additionally, the Company elected the transition practical expedients provided by ASU 2016-02, which allowed the Company to carryforward its historical lease classification. Having adopted ASU 2016-02, the Company updated its leases accounting policy as described below. For a complete list of significant accounting policies, see the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Leases

Leases are classified as either operating leases or finance leases. The Company and its Affiliates currently lease office space and equipment primarily under operating lease arrangements.  As these leases expire, it is expected that, in the normal course of business, they will be renewed or replaced.  Whether a lease is classified as an operating lease or a finance lease, the Company and its Affiliates must record a right-of-use asset and a lease liability for all leases at the commencement date of the lease, other than for leases with an initial term of 12 months or less. As permitted under ASU 2016-02, the Company and its Affiliates elect not to record short-term leases with an initial lease term less than 12 months on the Company’s Conso