Company Quick10K Filing
Janus Henderson Group
Price22.12 EPS2
Shares190 P/E10
MCap4,201 P/FCF16
Net Debt-457 EBIT539
TEV3,744 TEV/EBIT7
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-04-30
10-K 2019-12-31 Filed 2020-02-26
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-07-31
10-Q 2018-03-31 Filed 2018-05-09
10-K 2017-12-31 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-08
8-K 2020-05-06
8-K 2020-04-30
8-K 2020-04-30
8-K 2020-04-29
8-K 2020-04-20
8-K 2020-03-19
8-K 2020-03-06
8-K 2020-02-04
8-K 2019-10-30
8-K 2019-07-31
8-K 2019-05-02
8-K 2019-05-02
8-K 2019-03-21
8-K 2019-03-05
8-K 2019-02-25
8-K 2019-02-05
8-K 2018-12-11
8-K 2018-11-01
8-K 2018-08-06
8-K 2018-07-31
8-K 2018-05-09
8-K 2018-05-03
8-K 2018-03-22
8-K 2018-02-28
8-K 2018-02-06

JHG 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation and Significant Accounting Policies
Note 2 - Dispositions
Note 3 - Consolidation
Note 4 - Investment Securities
Note 5 - Fair Value Measurements
Note 6 - Goodwill and Intangible Assets
Note 7 - Debt
Note 8 - Income Taxes
Note 9 - Noncontrolling Interests
Note 10 - Long - Term Incentive and Employee Compensation
Note 11 - Retirement Benefit Plans
Note 12 - Accumulated Other Comprehensive Loss
Note 13 - Earnings (Loss) and Dividends per Share
Note 14 - Commitments and Contingencies
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of Janus Henderson Group Plc
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-15.1 jhg-20200331xex15d1.htm
EX-31.1 jhg-20200331xex31d1.htm
EX-31.2 jhg-20200331xex31d2.htm
EX-32.1 jhg-20200331xex32d1.htm
EX-32.2 jhg-20200331xex32d2.htm

Janus Henderson Group Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02017201820192020
Assets, Equity
0.60.50.40.20.10.02017201820192020
Rev, G Profit, Net Income
0.30.20.1-0.1-0.2-0.32017201820192020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

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 001-38103

Graphic

JANUS HENDERSON GROUP PLC

(Exact name of registrant as specified in its charter)

Jersey, Channel Islands
(State or other jurisdiction of
incorporation or organization)

98-1376360
(I.R.S. Employer
Identification No.)

201 Bishopsgate

London, United Kingdom
(Address of principal executive offices)

EC2M3AE
(Zip Code)

+44 (0) 20 7818 1818

(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

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, $1.50 Per Share Par Value

JHG

New York Stock Exchange

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 Company was required to file such reports), and (2) has been subject to the 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,” “non-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 

As of April 27, 2020, there were 184,914,488 shares of the Company’s common stock, $1.50 par value per share, issued and outstanding.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

JANUS HENDERSON GROUP PLC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(U.S. Dollars in Millions, Except Share Data)

March 31, 

December 31, 

    

2020

    

2019

ASSETS

Current assets:

Cash and cash equivalents

$

732.5

$

733.9

Investment securities

 

250.6

 

253.5

Fees and other receivables

 

291.3

 

334.8

OEIC and unit trust receivables

 

206.2

 

131.7

Assets of consolidated VIEs:

Cash and cash equivalents

69.7

62.6

Investment securities

548.8

924.8

Other current assets

35.0

23.5

Other current assets

110.4

116.0

Total current assets

 

2,244.5

 

2,580.8

Non-current assets:

Property, equipment and software, net

 

84.0

 

84.7

Intangible assets, net

 

2,651.7

 

3,088.6

Goodwill

 

1,307.1

 

1,504.3

Retirement benefit asset, net

200.3

214.0

Other non-current assets

 

156.3

 

149.3

Total assets

$

6,643.9

$

7,621.7

LIABILITIES

Current liabilities:

Accounts payable and accrued liabilities

$

221.6

$

246.0

Current portion of accrued compensation, benefits and staff costs

 

172.3

 

335.7

OEIC and unit trust payables

213.7

130.9

Liabilities of consolidated VIEs:

Accounts payable and accrued liabilities

 

83.1

 

57.1

Total current liabilities

 

690.7

 

769.7

Non-current liabilities:

Accrued compensation, benefits and staff costs

30.9

59.4

Long-term debt

 

315.5

 

316.2

Deferred tax liabilities, net

 

602.7

 

729.1

Retirement benefit obligations, net

4.1

4.4

Other non-current liabilities

 

142.6

 

158.8

Total liabilities

 

1,786.5

 

2,037.6

Commitments and contingencies (See Note 14)

REDEEMABLE NONCONTROLLING INTERESTS

 

464.0

 

677.9

EQUITY

Common stock ($1.50 par, 480,000,000 shares authorized and 184,914,488 and 186,975,693 shares issued and outstanding as of March 31, 2020, and December 31, 2019, respectively)

 

277.4

 

280.5

Additional paid-in-capital

3,803.7

3,828.5

Treasury shares (3,534,497 and 3,545,812 shares held, respectively)

 

(137.9)

 

(139.5)

Accumulated other comprehensive loss, net of tax

 

(511.0)

 

(367.1)

Retained earnings

942.8

1,284.1

Total shareholders’ equity

 

4,375.0

 

4,886.5

Nonredeemable noncontrolling interests

 

18.4

 

19.7

Total equity

 

4,393.4

 

4,906.2

Total liabilities, redeemable noncontrolling interests and equity

$

6,643.9

$

7,621.7

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

JANUS HENDERSON GROUP PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(U.S. Dollars in Millions, Except per Share Data)

Three months ended

March 31, 

    

2020

    

2019

Revenue:

Management fees

$

439.6

$

441.9

Performance fees

 

14.6

 

(5.6)

Shareowner servicing fees

 

50.3

 

35.9

Other revenue

50.4

47.1

Total revenue

 

554.9

 

519.3

Operating expenses:

Employee compensation and benefits

 

155.6

 

145.0

Long-term incentive plans

 

33.6

 

48.4

Distribution expenses

112.2

101.9

Investment administration

11.7

11.8

Marketing

 

6.7

 

7.5

General, administrative and occupancy

 

65.2

 

65.2

Impairment of goodwill and intangible assets

487.3

Depreciation and amortization

 

15.0

 

15.0

Total operating expenses

 

887.3

 

394.8

Operating income (loss)

 

(332.4)

 

124.5

Interest expense

 

(3.3)

 

(4.1)

Investment gains (losses), net

 

(50.5)

 

13.3

Other non-operating income (expenses), net

32.2

(3.9)

Income (loss) before taxes

 

(354.0)

 

129.8

Income tax benefit (provision)

 

68.8

 

(29.9)

Net income (loss)

 

(285.2)

 

99.9

Net loss (income) attributable to noncontrolling interests

 

38.2

 

(5.8)

Net income (loss) attributable to JHG

$

(247.0)

$

94.1

Earnings (loss) per share attributable to JHG common shareholders:

Basic

$

(1.35)

$

0.48

Diluted

$

(1.35)

$

0.48

Other comprehensive income (loss), net of tax:

Foreign currency translation gains (losses)

$

(149.1)

$

36.8

Actuarial gains

 

0.1

 

Other comprehensive income (loss), net of tax

 

(149.0)

 

36.8

Other comprehensive loss (income) attributable to noncontrolling interests

 

5.1

 

(0.1)

Other comprehensive income (loss) attributable to JHG

$

(143.9)

$

36.7

Total comprehensive income (loss)

$

(434.2)

$

136.7

Total comprehensive loss (income) attributable to noncontrolling interests

 

43.3

 

(5.9)

Total comprehensive income (loss) attributable to JHG

$

(390.9)

$

130.8

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

JANUS HENDERSON GROUP PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(U.S. Dollars in Millions)

Three months ended

March 31, 

2020

2019

CASH FLOWS PROVIDED BY (USED FOR):

Operating activities:

Net income (loss)

$

(285.2)

$

99.9

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

15.0

15.0

Impairment of goodwill and intangible assets

487.3

Deferred income taxes

(110.8)

0.4

Stock-based compensation plan expense

16.6

20.1

Impairment of right-of-use operating asset

4.7

Gain on sale of Geneva

(17.4)

Investment (gains) losses, net

50.5

(13.3)

Contributions to pension plans in excess of costs recognized

(0.1)

(1.8)

Contingent consideration adjustment

(7.1)

Other, net

(13.2)

(3.2)

Changes in operating assets and liabilities:

OEIC and unit trust receivables and payables

8.3

11.1

Other assets

57.4

1.8

Other accruals and liabilities

(163.4)

(169.4)

Net operating activities

37.9

(34.7)

Investing activities:

Proceeds from (purchase of):

Investment securities, net

98.3

19.3

Property, equipment and software

(8.2)

(7.5)

Investment securities by consolidated seeded investment products, net

(105.3)

46.1

Cash received (paid) on settled hedges, net

17.9

(7.4)

Dividends received from equity-method investments

0.5

0.5

Proceeds from sale of Volantis

0.3

Proceeds from sale of Geneva

38.6

Net investing activities

41.8

51.3

Financing activities:

Purchase of common stock for stock-based compensation plans

(39.8)

(37.1)

Purchase of common stock for share buyback program

(31.2)

(30.9)

Dividends paid to shareholders

(66.2)

(69.7)

Payment of contingent consideration

(13.8)

(14.1)

Distributions to noncontrolling interests

(0.1)

(0.1)

Third-party sales (redemptions) in consolidated seeded investment products, net

105.3

(46.1)

Principal payments under capital lease obligations

(0.2)

(0.3)

Net financing activities

(46.0)

(198.3)

Cash and cash equivalents:

Effect of foreign exchange rate changes

(28.0)

5.0

Net change

5.7

(176.7)

At beginning of period

796.5

916.6

At end of period

$

802.2

$

739.9

Supplemental cash flow information:

Cash paid for interest

$

7.3

$

7.3

Cash paid for income taxes, net of refunds

$

4.9

$

12.6

Reconciliation of cash and cash equivalents:

Cash and cash equivalents

$

732.5

$

717.1

Cash and cash equivalents held in consolidated VIEs

69.7

22.8

Total cash and cash equivalents

$

802.2

$

739.9

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

JANUS HENDERSON GROUP PLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(Amounts in Millions)

Accumulated

Additional

other

Nonredeemable

Number of

Common

paid-in

Treasury

comprehensive

Retained

noncontrolling

Total

shares

stock

capital

shares

loss

earnings

interests

equity

Balance at January 1, 2020

187.0

$

280.5

$

3,828.5

$

(139.5)

$

(367.1)

$

1,284.1

$

19.7

$

4,906.2

Net loss

(247.0)

(1.2)

(248.2)

Other comprehensive income

(143.9)

 

 

(143.9)

Dividends paid to shareholders

 

(66.2)

 

(66.2)

Share buyback program

(2.1)

(3.1)

(28.1)

(31.2)

Distributions to noncontrolling interests

(0.1)

(0.1)

Purchase of common stock for stock-based compensation plans

 

 

(37.0)

(2.8)

 

 

(39.8)

Vesting of stock-based compensation plans

(4.4)

4.4

 

 

Stock-based compensation plan expense

 

16.6

 

 

16.6

Balance at March 31, 2020

184.9

$

277.4

$

3,803.7

$

(137.9)

$

(511.0)

$

942.8

$

18.4

$

4,393.4

    

    

    

    

    

Accumulated

    

    

    

Additional

other

Nonredeemable

Number of

Common

paid-in

Treasury

comprehensive

Retained

noncontrolling

Total

shares

stock

capital

shares

loss

earnings

interests

equity

Balance at January 1, 2019

196.4

$

294.6

$

3,824.5

$

(170.8)

$

(423.5)

$

1,314.5

$

21.5

$

4,860.8

Net income

94.1

1.2

95.3

Other comprehensive loss

36.7

 

 

36.7

Dividends paid to shareholders

 

(69.7)

 

(69.7)

Share buyback program

(1.2)

(1.9)

(29.0)

(30.9)

Distributions to noncontrolling interests

(0.1)

(0.1)

Purchase of common stock for stock-based compensation plans

 

 

(31.4)

(5.7)

 

 

(37.1)

Vesting of stock-based compensation plans

(11.1)

11.1

 

 

Stock-based compensation plan expense

 

20.1

 

 

20.1

Balance at March 31, 2019

195.2

$

292.7

$

3,802.1

$

(165.4)

$

(386.8)

$

1,309.9

$

22.6

$

4,875.1

The accompanying notes are an integral part of these condensed consolidated financial statements. 

4

JANUS HENDERSON GROUP PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 — Basis of Presentation and Significant Accounting Policies

Basis of Presentation

In the opinion of management of Janus Henderson Group plc (“JHG,” “the Group,” “we,” “us,” “our” and similar terms), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state our financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in our Annual Report on Form 10-K for the year ended December 31, 2019. The December 31, 2019, condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date.

Recent Accounting Pronouncements Adopted

Implementation Costs — Cloud Computing Arrangements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for implementation costs incurred to develop or obtain internal-use software. The ASU is effective January 1, 2020, for calendar year-end companies and for the interim periods within those years. The ASU allows either a retrospective or prospective approach to all implementation costs incurred after adoption. We adopted the ASU effective January 1, 2020, using the prospective approach. There were no capitalized implementation costs incurred during the period ended March 31, 2020. We generally expect increased capitalized costs as our previous policy dictated that implementation costs incurred in a hosting arrangement be expensed as incurred.

Recent Accounting Pronouncements Not Yet Adopted

Retirement Benefit Plans

In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension plans. The ASU removes, adds and clarifies a number of disclosure requirements related to sponsored benefit plans. The standard is effective January 1, 2021, for calendar year-end companies, and early adoption is permitted. We are evaluating the effect of adopting this new accounting standard.

Note 2 — Dispositions

On December 3, 2019, Henderson Global Investors (North America), Inc. (“HGINA”), a subsidiary, of the Group, entered into an agreement to sell its 100% ownership interest in Geneva Capital Management LLC (“Geneva”) to GCM Purchaser, LLC. The sale closed on March 17, 2020.

Consideration included aggregate cash consideration of $38.6 million and contingent consideration (the “Earnout”) based on future revenue. Payments under the Earnout are to be made quarterly over a five-year term, with minimum aggregate payments of $20.5 million and maximum aggregate payments of $35.0 million. We recognized a gain on the sale of Geneva of $17.4 million in other non-operating income (expenses), net on the Condensed Consolidated Statements of Comprehensive Income during the three months ended March 31, 2020.

5

The gain on the sale of Geneva was calculated as follows (in millions):

Consideration received:

Cash

$

38.6

Minimum earnout

 

20.5

Less carrying amount of assets and liabilities:

Intangible assets

17.9

Other assets

 

0.3

Less: Goodwill allocation

23.5

Net gain on sale, before taxes

$

17.4

Note 3 — Consolidation

Variable Interest Entities

Consolidated Variable Interest Entities

Our consolidated variable interest entities (“VIEs”) as of March 31, 2020, and December 31, 2019, include certain consolidated seeded investment products in which we have an investment and act as the investment manager. The assets of these VIEs are not available to us or our creditors. We may not, under any circumstances, access cash and cash equivalents held by consolidated VIEs to use in our operating activities or otherwise. In addition, the investors in these VIEs have no recourse to the credit of JHG.

Unconsolidated Variable Interest Entities

At March 31, 2020, and December 31, 2019, the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VIEs was $8.1 million and $9.9 million, respectively. Our total exposure to unconsolidated VIEs represents the value of our economic ownership interest in the investment securities.

Voting Rights Entities

Consolidated Voting Rights Entities

The following table presents the balances related to consolidated voting rights entities (“VREs”) that were recorded on our Condensed Consolidated Balance Sheets, including our net interest in these products (in millions):

    

March 31, 

    

December 31, 

2020

2019

Investment securities

$

52.7

$

29.9

Cash and cash equivalents

5.7

 

1.5

Other current assets

14.4

0.2

Accounts payable and accrued liabilities

(8.6)

(0.7)

Total

64.2

 

30.9

Redeemable noncontrolling interests in consolidated VREs

(43.2)

 

(6.3)

JHG's net interest in consolidated VREs

$

21.0

$

24.6

Our total exposure to consolidated VREs represents the value of our economic ownership interest in these seeded investment products.

6

Unconsolidated Voting Rights Entities

At March 31, 2020, and December 31, 2019, the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VREs was $30.1 million and $21.5 million, respectively. Our total exposure to unconsolidated VREs represents the value of our economic ownership interest in the investment securities.

Note 4 — Investment Securities

Our investment securities as of March 31, 2020, and December 31, 2019, are summarized as follows (in millions):

March 31, 

December 31, 

    

2020

    

2019

Seeded investment products:

Consolidated VIEs

$

548.8

$

924.8

Consolidated VREs

52.7

29.9

Unconsolidated VIEs and VREs

38.2

31.4

Separate accounts

54.8

60.8

Pooled investment funds

0.1

0.1

Total seeded investment products

 

694.6

 

1,047.0

Investments related to deferred compensation plans

 

99.5

 

125.9

Other investments

5.3

5.4

Total investment securities

$

799.4

$

1,178.3

Trading Securities

Net unrealized gains (losses) on investment securities held as of the three months ended March 31, 2020 and 2019, are summarized as follows (in millions):

Three months ended

March 31, 

    

2020

    

2019

Unrealized gains (losses) on investment securities held at period end

 

$

(39.5)

 

$

11.1

Derivative Instruments

We maintain an economic hedge program that uses derivative instruments to mitigate against market volatility of certain seeded investments by using index and commodity futures (“futures”), index swaps, total return swaps (“TRSs”) and credit default swaps. Foreign currency exposures associated with our seeded investment products are also hedged by using foreign currency forward contracts. We also have a net investment hedge related to foreign currency translation on hedged seed investments denominated in currencies other than our functional currency.

We were party to the following derivative instruments as of March 31, 2020, and December 31, 2019 (in millions):

Notional value

    

March 31, 2020

    

December 31, 2019

Futures

$

117.4

$

222.9

Credit default swaps

150.2

143.0

Total return swaps

45.4

46.3

Foreign currency forward contracts

224.8

327.8

7

The derivative instruments are not designated as hedges for accounting purposes, with the exception of certain foreign currency forward contracts used for net investment hedging. Changes in fair value of the futures, index swaps, TRSs and credit default swaps are recognized in investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income. Changes in the fair value of the foreign currency forward contracts designated as hedges for accounting purposes are recognized in other comprehensive income (loss), net of tax on our Condensed Consolidated Statements of Comprehensive Income.

Derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. As of March 31, 2020, derivative assets and liabilities were $13.3 million and $0.2 million, respectively.

We recognized the following foreign currency translation losses on hedged seed investments denominated in currencies other than our functional currency and gains associated with foreign currency forward contracts under net investment hedge accounting for the three months ended March 31, 2020 and 2019 (in millions):

Three months ended

March 31, 

    

2020

    

2019

Foreign currency translation

    

$

3.0

    

$

0.3

Foreign currency forward contracts

 

(3.0)

 

(0.3)

Total

$

$

In addition to using derivative instruments to mitigate against market volatility of certain seeded investments, we also occasionally engage in short sales of securities. As of March 31, 2020, the fair value of securities sold but not yet purchased was $9.6 million. The cash received from the short sale and the obligation to repurchase the shares are classified in other current assets and accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets, respectively. Fair value adjustments are recognized in investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income.

Derivative Instruments in Consolidated Seeded Investment Products

Certain of our consolidated seeded investment products utilize derivative instruments to contribute to the achievement of defined investment objectives. These derivative instruments are classified within other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income.

Our consolidated seeded investment products were party to the following derivative instruments as of March 31, 2020, and December 31, 2019 (in millions):