Company Quick10K Filing
T Rowe Price
Price113.03 EPS8
Shares239 P/E13
MCap27,014 P/FCF18
Net Debt-2,294 EBIT2,530
TEV24,720 TEV/EBIT10
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-04-28
10-K 2019-12-31 Filed 2020-02-13
10-Q 2019-09-30 Filed 2019-10-24
10-Q 2019-06-30 Filed 2019-07-24
10-Q 2019-03-31 Filed 2019-04-24
10-K 2018-12-31 Filed 2019-02-13
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-07-25
10-Q 2018-03-31 Filed 2018-04-25
10-K 2017-12-31 Filed 2018-02-16
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-07-25
10-Q 2017-03-31 Filed 2017-04-25
10-K 2016-12-31 Filed 2017-02-07
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-07-26
10-Q 2016-03-31 Filed 2016-04-26
10-K 2015-12-31 Filed 2016-02-05
10-Q 2015-09-30 Filed 2015-10-22
10-Q 2015-06-30 Filed 2015-07-23
10-Q 2015-03-31 Filed 2015-04-22
10-K 2014-12-31 Filed 2015-02-05
10-Q 2014-09-30 Filed 2014-10-23
10-Q 2014-06-30 Filed 2014-07-24
10-Q 2014-03-31 Filed 2014-04-24
10-K 2013-12-31 Filed 2014-02-04
10-Q 2013-09-30 Filed 2013-10-24
10-Q 2013-06-30 Filed 2013-07-24
10-Q 2013-03-31 Filed 2013-04-24
10-K 2012-12-31 Filed 2013-02-05
10-Q 2012-09-30 Filed 2012-10-24
10-Q 2012-06-30 Filed 2012-07-25
10-Q 2012-03-31 Filed 2012-04-24
10-K 2011-12-31 Filed 2012-02-03
10-Q 2011-09-30 Filed 2011-10-25
10-Q 2011-06-30 Filed 2011-07-26
10-Q 2011-03-31 Filed 2011-04-21
10-Q 2010-09-30 Filed 2010-10-22
10-Q 2010-06-30 Filed 2010-07-23
10-Q 2010-03-31 Filed 2010-04-23
10-K 2009-12-31 Filed 2010-02-05
8-K 2020-05-12
8-K 2020-03-30
8-K 2020-02-19
8-K 2020-02-05
8-K 2020-01-29
8-K 2019-12-09
8-K 2019-06-13
8-K 2019-04-26
8-K 2019-02-26
8-K 2019-02-11
8-K 2019-01-30
8-K 2018-12-20
8-K 2018-10-08
8-K 2018-04-26
8-K 2018-02-21
8-K 2018-02-12
8-K 2018-01-30
8-K 2018-01-22

TROW 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Note 1 - The Company and Basis of Preparation.
Note 2 - Information About Receivables, Revenues, and Services.
Note 3 - Investments.
Note 4 - Fair Value Measurements.
Note 5 - Consolidated T. Rowe Price Investment Products.
Note 6 - Stockholders' Equity.
Note 7 - Stock - Based Compensation.
Note 8 - Earnings per Share Calculations.
Note 9 - Other Comprehensive Income and Accumulated Other Comprehensive Loss.
Note 10 - Commitments and Contingencies.
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 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-15.1 trow-ex15q12020x10q.htm
EX-31.1 trow-ex31i1q12020.htm
EX-31.2 trow-ex31i2q12020.htm
EX-32.1 trow-ex32q12020.htm
EX-99.1 earningsreleasetemplat.htm

T Rowe Price Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
1.51.20.90.60.30.02016201720182020
Rev, G Profit, Net Income
0.60.30.0-0.3-0.6-0.92012201420172020
Ops, Inv, Fin

Document
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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: 000-32191
______________________________________ 
T. ROWE PRICE GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland
 
52-2264646
(State of incorporation)
 
(I.R.S. Employer Identification No.)
100 East Pratt Street, Baltimore, Maryland 21202
(Address, including Zip Code, of principal executive offices)
(410) 345-2000
(Registrant’s telephone number, including area code)
________________
Common stock, $.20 par value per share
TROW
The NASDAQ Stock Market LLC
(title of security)
(ticker symbol)
(Name of exchange on which registered)
______________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months, 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 during the preceding 12 months.      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 (do not check if smaller reporting company)
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
The number of shares outstanding of the issuer’s common stock ($.20 par value), as of the latest practicable date, April 24, 2020, is 227,548,883.
The exhibit index is at Item 6 on page 36.
 





PART I – FINANCIAL INFORMATION

Item 1.
Financial Statements.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
 
 
 
3/31/2020
 
12/31/2019
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
1,562.4

 
$
1,781.8

Accounts receivable and accrued revenue
 
585.3

 
646.6

Investments
 
2,731.3

 
2,939.8

Assets of consolidated T. Rowe Price investment products ($1,795.8 million at March 31, 2020 and $1,975.3 million at December 31, 2019, related to variable interest entities)
 
2,024.3

 
2,276.9

Operating lease assets
 
137.6

 
110.8

Property and equipment, net
 
675.2

 
674.4

Goodwill
 
665.7

 
665.7

Other assets
 
255.1

 
234.4

Total assets
 
$
8,636.9

 
$
9,330.4

 
 
 
 
 
LIABILITIES
 
 
 
 
Accounts payable and accrued expenses
 
$
198.5

 
$
214.5

Liabilities of consolidated T. Rowe Price investment products ($72.0 million at March 31, 2020 and $27.0 million at December 31, 2019, related to variable interest entities)
 
82.9

 
39.2

Operating lease liabilities
 
172.6

 
146.3

Accrued compensation and related costs
 
215.4

 
112.1

Supplemental savings plan liability
 
504.2

 
563.4

Income taxes payable
 
58.3

 
31.8

Total liabilities
 
1,231.9

 
1,107.3

 
 
 
 
 
Commitments and contingent liabilities
 


 


 
 
 
 
 
Redeemable non-controlling interests
 
971.0

 
1,121.0

 
 
 
 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
Preferred stock, undesignated, $.20 par value – authorized and unissued 20,000,000 shares
 

 

Common stock, $.20 par value—authorized 750,000,000; issued 227,985,000 shares at March 31, 2020 and 235,214,000 at December 31, 2019
 
45.6

 
47.0

Additional capital in excess of par value
 
654.6

 
654.6

Retained earnings
 
5,782.9

 
6,443.5

Accumulated other comprehensive loss
 
(49.1
)
 
(43.0
)
Total permanent stockholders’ equity
 
6,434.0

 
7,102.1

Total liabilities, redeemable non-controlling interests, and permanent stockholders’ equity
 
$
8,636.9

 
$
9,330.4


The accompanying notes are an integral part of these statements.
Page 2



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per-share amounts)
 
 
Three months ended
 
3/31/2020
 
3/31/2019
Revenues
 
 
 
Investment advisory fees
$
1,327.8

 
$
1,194.2

Administrative, distribution, and servicing fees
134.8

 
133.1

Net revenues
1,462.6

 
1,327.3

 
 
 
 
Operating expenses
 
 
 
Compensation and related costs
440.7

 
491.5

Distribution and servicing
65.7

 
66.4

Advertising and promotion
24.9

 
21.6

Product-related costs
41.6

 
44.2

Technology, occupancy, and facility costs
105.4

 
98.1

General, administrative, and other
77.1

 
73.0

Total operating expenses
755.4

 
794.8

 
 
 
 
Net operating income
707.2

 
532.5

 
 
 
 
Non-operating income (loss)
 
 
 
Net gains (losses) on investments
(154.6
)
 
100.1

Net gains (losses) on consolidated investment products
(330.3
)
 
101.9

Other income (loss)
(15.4
)
 
.8

Total non-operating income (loss)
(500.3
)
 
202.8

 
 
 
 
Income before income taxes
206.9

 
735.3

Provision for income taxes
40.3

 
181.3

Net income
166.6

 
554.0

Less: net income (loss) attributable to redeemable non-controlling interests
(176.5
)
 
41.4

Net income attributable to T. Rowe Price Group
$
343.1

 
$
512.6

 
 
 
 
Earnings per share on common stock of T. Rowe Price Group
 
 
Basic
$
1.43

 
$
2.11

Diluted
$
1.41

 
$
2.09



The accompanying notes are an integral part of these statements.
Page 3



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
 
 
Three months ended
 
3/31/2020
 
3/31/2019
Net income
$
166.6

 
$
554.0

Other comprehensive income (loss)
 
 
 
Currency translation adjustments
 
 
 
Consolidated T. Rowe Price investment products - variable interest entities
(25.1
)
 
(5.8
)
Reclassification gains recognized in non-operating income upon deconsolidation of certain T. Rowe Price investment products
(.1
)
 
(.1
)
Total currency translation adjustments of consolidated T. Rowe Price investment products - variable interest entities
(25.2
)
 
(5.9
)
Equity method investments
(.1
)
 
4.9

Other comprehensive loss before income taxes
(25.3
)
 
(1.0
)
Net deferred tax benefits
2.0

 
.1

Total other comprehensive loss
(23.3
)
 
(.9
)
 
 
 
 
Total comprehensive income
143.3

 
553.1

Less: comprehensive income (loss) attributable to redeemable non-controlling interests
(193.7
)
 
40.1

Total comprehensive income attributable to T. Rowe Price Group
$
337.0

 
$
513.0



The accompanying notes are an integral part of these statements.
Page 4



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 
 
Three months ended
 
3/31/2020
 
3/31/2019
Cash flows from operating activities
 
 
 
Net income
$
166.6

 
$
554.0

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization of property and equipment
46.1

 
41.9

Stock-based compensation expense
58.3

 
43.5

Net (gains) losses recognized on investments
167.3

 
(82.0
)
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability
(8.9
)
 
(18.2
)
Net change in securities held by consolidated T. Rowe Price investment products
234.6

 
(184.2
)
Other changes in assets and liabilities
123.7

 
223.7

Net cash provided by operating activities
787.7

 
578.7

 
 
 
 
Cash flows from investing activities
 
 
 
Purchases of T. Rowe Price investment products
(225.1
)
 
(15.6
)
Dispositions of T. Rowe Price investment products
299.1

 
33.5

Net cash of T. Rowe Price investment products on deconsolidation
(.8
)
 
(3.4
)
Additions to property and equipment
(46.0
)
 
(47.7
)
Other investing activity
.4

 
(.6
)
Net cash provided by (used in) investing activities
27.6

 
(33.8
)
 
 
 
 
Cash flows from financing activities
 
 
 
Repurchases of common stock
(891.3
)
 
(231.0
)
Common share issuances under stock-based compensation plans
38.1

 
43.6

Dividends paid to common stockholders of T. Rowe Price Group
(215.2
)
 
(184.6
)
Net subscriptions received from redeemable non-controlling interest holders
76.1

 
66.0

Net cash used in financing activities
(992.3
)
 
(306.0
)
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents of consolidated
T. Rowe Price investment products
(1.2
)
 
(.7
)
 
 
 
 
Net change in cash and cash equivalents during period
(178.2
)
 
238.2

Cash and cash equivalents at beginning of period, including $76.5 million at December 31, 2019, and $70.1 million at December 31, 2018, held by consolidated T. Rowe Price investment products
1,858.3

 
1,495.3

Cash and cash equivalents at end of period, including $117.7 million at March 31, 2020, and $76.1 million at March 31, 2019, held by consolidated T. Rowe Price investment products
$
1,680.1

 
$
1,733.5




The accompanying notes are an integral part of these statements.
Page 5



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(shares in thousands; dollars in millions)
 
Three months ended 3/31/2020
 
Common
shares
outstanding
 
Common
stock
 
Additional
capital in
excess of
par value
 
Retained
earnings
 
AOCI(1)
 
Total
stockholders’
equity
 
Redeemable non-controlling interests
Balances at December 31, 2019
235,214

 
$
47.0

 
$
654.6

 
$
6,443.5

 
$
(43.0
)
 
$
7,102.1

 
$
1,121.0

Net income

 

 

 
343.1

 

 
343.1

 
(176.5
)
Other comprehensive loss, net of tax

 

 

 

 
(6.1
)
 
(6.1
)
 
(17.2
)
Dividends declared ($0.90 per share)

 

 

 
(214.7
)
 

 
(214.7
)
 

Shares issued upon option exercises
1,068

 
.2

 
41.1

 

 

 
41.3

 

Net shares issued upon vesting of restricted stock units
37

 

 
(3.0
)
 

 

 
(3.0
)
 

Stock-based compensation expense

 

 
58.3

 

 

 
58.3

 

Restricted stock units issued as dividend equivalents

 

 
.1

 
(.1
)
 

 

 

Common shares repurchased
(8,334
)
 
(1.6
)
 
(96.5
)
 
(788.9
)
 

 
(887.0
)
 

Net subscriptions into T. Rowe Price investment products

 

 

 

 

 

 
63.8

Net deconsolidations of T. Rowe Price investment products

 

 

 

 

 

 
(20.1
)
Balances at March 31, 2020
227,985

 
$
45.6

 
$
654.6

 
$
5,782.9

 
$
(49.1
)
 
$
6,434.0

 
$
971.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended 3/31/2019
 
Common
shares
outstanding
 
Common
stock
 
Additional
capital in
excess of
par value
 
Retained
earnings
 
AOCI(1)
 
Total
stockholders’
equity
 
Redeemable non-controlling interests
Balances at December 31, 2018
238,069

 
$
47.6

 
$
654.6

 
$
5,464.1

 
$
(42.0
)
 
$
6,124.3

 
$
740.3

Net income

 

 

 
512.6

 

 
512.6

 
41.4

Other comprehensive income (loss), net of tax

 

 

 

 
.4

 
.4

 
(1.3
)
Dividends declared ($0.76 per share)

 

 

 
(183.8
)
 

 
(183.8
)
 

Shares issued upon option exercises
830

 
.2

 
44.8

 

 

 
45.0

 

Net shares issued upon vesting of restricted stock units
14

 

 
(1.2
)
 

 

 
(1.2
)
 

Forfeiture of restricted awards
(5
)
 

 

 

 

 

 

Stock-based compensation expense

 

 
43.5

 

 

 
43.5

 

Common shares repurchased
(2,476
)
 
(.5
)
 
(87.2
)
 
(142.1
)
 

 
(229.8
)
 

Net subscriptions into T. Rowe Price investment products

 

 

 

 

 

 
85.9

Net reconsolidations of T. Rowe Price investment products

 

 

 

 

 

 
20.4

Balances at March 31, 2019
236,432

 
$
47.3

 
$
654.5

 
$
5,650.8

 
$
(41.6
)
 
$
6,311.0

 
$
886.7


(1) Accumulated other comprehensive income.


The accompanying notes are an integral part of these statements.
Page 6



NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – THE COMPANY AND BASIS OF PREPARATION.

T. Rowe Price Group Inc. derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors in the T. Rowe Price U.S. mutual funds (“U.S. mutual funds”), separately managed accounts, subadvised funds, and other T. Rowe Price products. The other T. Rowe Price products include: collective investment trusts, open-ended investment products offered to investors outside the U.S., and products offered through variable annuity life insurance plans in the U.S. We also provide certain investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; and trust services.

Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations.

BASIS OF PRESENTATION.

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These principles require the use of estimates and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of our results for the interim periods presented. All such adjustments are of a normal recurring nature. Actual results may vary from our estimates.

The unaudited interim financial information contained in these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report.

NEW ACCOUNTING GUIDANCE.

We adopted Accounting Standards Update No. 2018-15 — Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract on January 1, 2020 using the prospective method of adoption. This update required implementation costs incurred in cloud computing arrangements to be deferred and recognized over the term of the hosting arrangement. A hosting arrangement is an agreement that allows customers, like us, to access and use software on an as-needed basis without having possession of the software. Beginning on January 1, 2020, we are required to defer such qualifying implementation costs. As of March 31, 2020, we capitalized an immaterial amount of implementation costs incurred in a cloud computing arrangement. Accordingly, the adoption of this guidance did not have a material impact on our consolidated balance sheets or our consolidated statements of income.

NEWLY ISSUED BUT NOT YET ADOPTED ACCOUNTING GUIDANCE

We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our unaudited condensed consolidated statements, including those we have not yet adopted. We do not believe that any such guidance has or will have a material effect on our financial position or results of operations.

U.S. ECONOMIC RELIEF LEGISLATION

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act. The CARES Act provides economic relief to eligible businesses and individuals impacted by the novel coronavirus pandemic. We are currently assessing what impact, if any, the CARES Act’s provisions will have on our financial position and results of operations, but we do not believe the impact will be material.



Page 7



NOTE 2 – INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES.

Revenues earned during the first quarter of 2020 and 2019 under agreements with clients include: 
 
Three months ended 3/31/2020
 
Three months ended 3/31/2019
 
 
 
Administrative, distribution, and servicing fees
 
 
 
 
 
Administrative, distribution, and servicing fees
 
 
(in millions)
Investment advisory fees
 
Administrative fees
 
Distribution and servicing fees
 
Net revenues
 
Investment advisory fees
 
Administrative fees
 
Distribution and servicing fees
 
Net revenues
U.S. mutual funds
$
876.2

 
$
77.2

 
$
27.9

 
$
981.3

 
$
815.9

 
$
76.6

 
$
30.2

 
$
922.7

Subadvised and separate accounts and other investment products
451.6

 

 

 
451.6

 
378.3

 

 

 
378.3

Other clients

 
29.7

 

 
29.7

 

 
26.3

 

 
26.3

 
$
1,327.8

 
$
106.9

 
$
27.9

 
$
1,462.6

 
$
1,194.2

 
$
102.9

 
$
30.2

 
$
1,327.3


Total net revenues earned from our related parties, specifically T. Rowe Price investment products, aggregate $1,207.7 million and $1,093.4 million for the three months ended March 31, 2020 and 2019, respectively. Accounts receivable from these products aggregate to $374.3 million at March 31, 2020, and $424.8 million at December 31, 2019.

The following table details the investment advisory fees earned from clients by their underlying asset class.
 
Three months ended
(in millions)
3/31/2020
 
3/31/2019
U.S. mutual funds
 
 
 
Equity and blended assets
$
749.8

 
$
694.5

Fixed income, including money market
126.4

 
121.4

 
876.2

 
815.9

Subadvised and separate accounts and other investment products
 
 
 
Equity and blended assets
385.2

 
318.8

Fixed income, including money market
66.4

 
59.5

 
451.6

 
378.3

Total
$
1,327.8

 
$
1,194.2



The following table summarizes the assets under management on which we earn investment advisory fees.
 
Average during
 
 
 
three months ended
 
As of
(in billions)
3/31/2020
 
3/31/2019
 
3/31/2020
 
12/31/2019
U.S. mutual funds
 
 
 
 
 
 
 
Equity and blended assets
$
525.0

 
$
487.6

 
$
443.6

 
$
552.4

Fixed income, including money market
129.3

 
122.5

 
118.7

 
130.3

 
654.3

 
610.1

 
562.3

 
682.7

Subadvised and separate accounts and other investment products
 
 
 
 
 
 
 
Equity and blended assets
396.3

 
332.9

 
340.9

 
412.1

Fixed income, including money market
112.1

 
100.5

 
105.6

 
112.0

 
508.4

 
433.4

 
446.5

 
524.1

Total
$
1,162.7

 
$
1,043.5

 
$
1,008.8

 
$
1,206.8



Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 7.4% and 6.9% of our assets under management at March 31, 2020, and December 31, 2019, respectively.


Page 8



NOTE 3 – INVESTMENTS.

The carrying values of our investments that are not part of the consolidated T. Rowe Price investment products are as follows:
(in millions)
3/31/2020
 
12/31/2019
Investments held at fair value
 
 
 
T. Rowe Price investment products
$
1,088.1

 
$
1,402.9

T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability
500.0

 
561.1

Investment partnerships and other investments
105.5

 
99.7

Equity method investments
 
 
 
T. Rowe Price investment products
864.5

 
705.6

26% interest in UTI Asset Management Company Limited (India)
166.8

 
164.5

Investment partnerships and other investments
5.4

 
5.0

U.S. Treasury note
1.0

 
1.0

Total
$
2,731.3

 
$
2,939.8


The investment partnerships are carried at fair value using net asset value (“NAV”) per share as a practical expedient. Our interests in these partnerships are generally not redeemable and are subject to significant restrictions on transferability. The underlying investments of these partnerships have contractual terms through 2029, though we may receive distributions of liquidating assets over a longer term. The investment strategies of these partnerships include growth equity, buyout, venture capital, and real estate.

During the three months ended March 31, 2020, net losses on investments included $103.6 million of net unrealized losses related to investments held at fair value that were still held at March 31, 2020. For the same period of 2019, the net gains on investments included $50.6 million of net unrealized gains on investments held at fair value that were still held at March 31, 2019.

During the three months ended March 31, 2020 and 2019, certain T. Rowe Price investment products in which we provided initial seed capital at the time of formation were deconsolidated, as we no longer had a controlling interest. Depending on our ownership interest, we are now reporting our residual interests in these T. Rowe Price investment products as either an equity method investment or an investment held at fair value. Additionally, during the three months ended March 31, 2019, certain T. Rowe Price investment products that were being accounted for as equity method investments were consolidated, as we regained a controlling interest. The net impact of these changes on our unaudited condensed consolidated balance sheets and statements of income as of the dates the portfolios were deconsolidated or reconsolidated is detailed below.
 
Three months ended
(in millions)
3/31/2020
 
3/31/2019
Net increase (decrease) in assets of consolidated T. Rowe Price investment products
$
(46.2
)
 
$
12.3

Net decrease in liabilities of consolidated T. Rowe Price investment products
$
(2.4
)
 
$
(.9
)
Net increase (decrease) in redeemable non-controlling interests
$
(20.1
)
 
$
20.4

 
 
 
 
Gains recognized upon deconsolidation
$
.1

 
$
.1


The gains or losses recognized upon deconsolidation were the result of reclassifying currency translation adjustments accumulated on certain T. Rowe Price investment products with non-USD functional currencies from accumulated other comprehensive income to non-operating income (loss).



Page 9



VARIABLE INTEREST ENTITIES.

Our investments at March 31, 2020 and December 31, 2019, include interests in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities is as follows:
(in millions)
3/31/2020
 
12/31/2019
Investment carrying values
$
129.4

 
$
156.0

Unfunded capital commitments
15.6

 
18.1

Uncollected investment advisory and administrative fees
7.1

 
10.5

 
$
152.1

 
$
184.6



The unfunded capital commitments totaling $15.6 million and $18.1 million at March 31, 2020 and December 31, 2019, respectively, relate primarily to the investment partnerships in which we have an existing investment. In addition to such amounts, a percentage of prior distributions may be called under certain circumstances.

NOTE 4 – FAIR VALUE MEASUREMENTS.

We determine the fair value of our cash equivalents and certain investments using the following broad levels of inputs as defined by related accounting standards:

Level 1 – quoted prices in active markets for identical securities.
Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar
securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data
obtained from independent sources.
Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. We do not
value any investments using Level 3 inputs.

These levels are not necessarily an indication of the risk or liquidity associated with our investments. The following table summarizes our investments that are recognized in our unaudited condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. This table excludes investments held by the consolidated T. Rowe Price investment products which are presented separately on our unaudited condensed consolidated balance sheets and are detailed in Note 5.
 
3/31/2020
 
12/31/2019
(in millions)
Level 1
 
Level 2
 
Level 1
 
Level 2
Cash equivalents held in T. Rowe Price money market funds
$
1,164.9

 
$

 
$
1,355.6

 
$

T. Rowe Price investment products
1,075.7

 
12.4

 
1,393.0

 
9.9

T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability
500.0

 

 
561.1

 

Total
$
2,740.6

 
$
12.4

 
$
3,309.7

 
$
9.9


As required by the accounting guidance, the fair value hierarchy levels table above does not include the investment partnerships and other investments for which fair value is estimated using their NAV per share as a practical expedient. The carrying value of these investments as disclosed in Note 3 were $105.5 million at March 31, 2020 and $99.7 million at December 31, 2019.

NOTE 5 – CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS.

The T. Rowe Price investment products that we consolidate in our unaudited condensed consolidated financial statements are generally those products we provided initial seed capital at the time of their formation and have a controlling interest. Our U.S. mutual funds are considered voting interest entities, while those regulated outside the U.S. are considered variable interest entities.



Page 10



The following table details the net assets of the consolidated T. Rowe Price investment products:
 
3/31/2020
 
12/31/2019
(in millions)
Voting
interest entities
 
Variable interest entities
 
Total
 
Voting
interest entities
 
Variable interest entities
 
Total
Cash and cash equivalents(1)
$
23.1

 
$
94.6

 
$
117.7

 
$
9.9

 
$
66.6

 
$
76.5

Investments(2)
197.3

 
1,641.3

 
1,838.6

 
281.1

 
1,891.3

 
2,172.4

Other assets
8.1

 
59.9

 
68.0

 
10.6

 
17.4

 
28.0

Total assets
228.5

 
1,795.8

 
2,024.3

 
301.6

 
1,975.3

 
2,276.9

Liabilities
10.9

 
72.0

 
82.9

 
12.2

 
27.0

 
39.2

Net assets
$
217.6

 
$
1,723.8

 
$
1,941.4

 
$
289.4

 
$
1,948.3

 
$
2,237.7

 
 
 
 
 
 
 
 
 
 
 
 
Attributable to T. Rowe Price Group
$
155.0

 
$
815.4

 
$
970.4

 
$
199.6

 
$
917.1

 
$
1,116.7

Attributable to redeemable non-controlling interests
62.6

 
908.4

 
971.0

 
89.8

 
1,031.2

 
1,121.0

 
$
217.6

 
$
1,723.8

 
$
1,941.4

 
$
289.4

 
$
1,948.3

 
$
2,237.7


(1) Cash and cash equivalents includes $22.5 million and $9.1 million at March 31, 2020, and December 31, 2019, respectively, of T. Rowe Price money market mutual funds.
(2) Investments includes $35.3 million and $40.2 million at March 31, 2020, and December 31, 2019, respectively, of T. Rowe Price investment products.

Although we can redeem our net interest in these consolidated T. Rowe Price investment products at any time, we cannot directly access or sell the assets held by these products to obtain cash for general operations. Additionally, the assets of these investment products are not available to our general creditors.

Since third party investors in these investment products have no recourse to our credit, our overall risk related to the net assets of consolidated T. Rowe Price investment products is limited to valuation changes associated with our net interest. We, however, are required to recognize the valuation changes associated with all underlying investments held by these products in our unaudited condensed consolidated statements of income and disclose the portion attributable to third party investors as net income attributable to redeemable non-controlling interests.

The operating results of the consolidated T. Rowe Price investment products for the three months ended March 31, 2020 and 2019, are reflected in our unaudited condensed consolidated statements of income as follows:
 
Three months ended
 
3/31/2020
 
3/31/2019
(in millions)
Voting interest entities
 
Variable interest entities
 
Total
 
Voting interest entities
 
Variable interest entities
 
Total
Operating expenses reflected in net operating income
$
(.2
)
 
$
(3.5
)
 
$
(3.7
)
 
$
(.3
)
 
$
(2.8
)
 
$
(3.1
)
Net investment income (loss) reflected in non-operating income (loss)
(35.2
)
 
(295.1
)
 
(330.3
)
 
8.0

 
93.9

 
101.9

Impact on income before taxes
$
(35.4
)
 
$
(298.6
)
 
$
(334.0
)
 
$
7.7

 
$
91.1

 
$
98.8

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to T. Rowe Price Group
$
(22.6
)
 
$
(134.9
)
 
$
(157.5
)
 
$
8.7

 
$
48.7

 
$
57.4

Net income (loss) attributable to redeemable non-controlling interests
(12.8
)
 
(163.7
)
 
(176.5
)
 
(1.0
)
 
42.4

 
41.4

 
$
(35.4
)
 
$
(298.6