PRICE T ROWE GROUP INC
For the period ended Dec 31, 2023. Filed Feb 16, 2024.
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FY2023 · Filed Feb 16, 2024
TROW$110.82+2.2%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Financial Statements
| Page | |
|---|---|
| Index to Financial Statements: | |
| Consolidated Balance Sheets at December 31, 2023 and 2022 | 57 |
| Consolidated Statements of Income for each of the years in the three-year period endedDecember 31, 2023 | 58 |
| Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 2023 | 59 |
| Consolidated Statements of Cash Flows for each of the years in the three-year period endedDecember 31, 2023 | 60 |
| Consolidated Statements of Stockholders' Equity for each of the years in the three-year period ended December 31, 2023 | 61 |
| Notes to Consolidated Financial Statements | 63 |
| Report of Independent Registered Public Accounting Firm (KPMG LLP, Baltimore, MD, Auditor ID: 185) | 88 |
(in millions, except share data)
| 12/31/2023 | 12/31/2022 | |
|---|---|---|
| ASSETS | ||
| 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 ($1,204.4 million at December 31, 2023 and $1,375.6 million at December 31, 2022, related to variable interest entities) | 1,959.3 | 1,603.4 |
| Operating lease assets | 241.1 | 279.4 |
| Property, equipment and software, net | 806.6 | 755.7 |
| Intangible assets | 507.3 | 629.8 |
| Goodwill | 2,642.8 | 2,642.8 |
| Other assets | 692.5 | 688.7 |
| Total assets | $12,278.8 | $11,643.3 |
| LIABILITIES | ||
| Accounts payable and accrued expenses | $409.5 | $406.7 |
| Liabilities of consolidated sponsored investment products ($35.2 million at December 31, 2023 and $39.1 million at December 31, 2022, related to variable interest entities) | 54.2 | 89.1 |
| Operating lease liabilities | 308.5 | 329.6 |
| Accrued compensation and related costs | 240.8 | 228.0 |
| Supplemental savings plan liability | 895.0 | 761.2 |
| Contingent consideration liability | 13.4 | 95.8 |
| Income taxes payable | 66.2 | 46.0 |
| Total liabilities | 1,987.6 | 1,956.4 |
| Commitments and contingent liabilities | ||
| Redeemable non-controlling interests | 594.1 | 656.7 |
| STOCKHOLDERS’ EQUITY | ||
| Preferred stock, undesignated, $.20 par value—authorized and unissued20,000,000 shares | — | — |
| Common stock, $.20 par value—authorized 750,000,000; issued 223,938,000 shares at December 31, 2023 and 224,310,000 at December 31, 2022 | 44.8 | 44.9 |
| Additional capital in excess of par value | 431.7 | 437.9 |
| Retained earnings | 9,076.1 | 8,409.7 |
| Accumulated other comprehensive loss | (47.5) | (53.0) |
| Total stockholders' equity attributable to T. Rowe Price Group, Inc. | 9,505.1 | 8,839.5 |
| Non-controlling interests in consolidated entities | 192.0 | 190.7 |
| Total permanent stockholders' equity | 9,697.1 | 9,030.2 |
| Total liabilities, redeemable non-controlling interests and permanent stockholders’ equity | $12,278.8 | $11,643.3 |
(in millions, except per-share amounts)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Revenues | |||
| Investment advisory fees | $5,747.7 | $5,969.1 | $7,098.1 |
| Capital allocation-based income | 161.9 | (54.3) | — |
| Administrative, distribution, and servicing fees | 550.9 | 573.6 | 573.8 |
| Net revenues | 6,460.5 | 6,488.4 | 7,671.9 |
| Operating expenses | |||
| Compensation and related costs | 2,673.5 | 2,320.8 | 2,383.0 |
| Distribution and servicing costs | 289.9 | 301.5 | 373.9 |
| Advertising and promotion | 114.2 | 97.3 | 100.2 |
| Product and recordkeeping related costs | 291.0 | 300.1 | 236.3 |
| Technology, occupancy, and facility costs | 632.6 | 560.5 | 484.9 |
| General, administrative, and other | 421.3 | 412.2 | 383.6 |
| Change in fair value of contingent consideration | (82.4) | (161.2) | — |
| Acquisition-related amortization and impairment costs | 134.2 | 283.5 | — |
| Total operating expenses | 4,474.3 | 4,114.7 | 3,961.9 |
| Net operating income | 1,986.2 | 2,373.7 | 3,710.0 |
| Non-operating income (loss) | |||
| Net gains (losses) on investments | 355.2 | (204.7) | 215.8 |
| Net gains (losses) on consolidated investment products | 164.6 | (203.5) | 74.7 |
| Other losses | (15.7) | (17.3) | (5.9) |
| Total non-operating income (loss) | 504.1 | (425.5) | 284.6 |
| Income before income taxes | 2,490.3 | 1,948.2 | 3,994.6 |
| Provision for income taxes | 654.6 | 498.6 | 896.1 |
| Net income | 1,835.7 | 1,449.6 | 3,098.5 |
| Less: net income (loss) attributable to redeemable non-controlling interests | 47.0 | (108.3) | 15.6 |
| Net income attributable to T. Rowe Price Group | $1,788.7 | $1,557.9 | $3,082.9 |
| Earnings per share on common stock of T. Rowe Price Group | |||
| Basic | $7.78 | $6.73 | $13.25 |
| Diluted | $7.76 | $6.70 | $13.12 |
(in millions)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Net income | $1,835.7 | $1,449.6 | $3,098.5 |
| Other comprehensive income (loss) | |||
| Currency translation adjustments: | |||
| Consolidated sponsored investment products—variable interest entities | 21.7 | (34.9) | (37.7) |
| Reclassification gains recognized in non-operating investment income upon deconsolidation of certain sponsored investment products | — | (3.0) | (2.4) |
| Total currency translation adjustments of consolidated sponsored investment products—variable interest entities | 21.7 | (37.9) | (40.1) |
| Equity method investments | (1.6) | (14.6) | 7.0 |
| Reclassification adjustment recognized upon partial disposition of equity method investment | — | — | — |
| Total equity method investments | (1.6) | (14.6) | 7.0 |
| Other comprehensive income (loss) before income taxes | 20.1 | (52.5) | (33.1) |
| Net deferred tax benefits (income taxes) | (1.9) | 5.0 | 3.4 |
| Total other comprehensive income (loss) | 18.2 | (47.5) | (29.7) |
| Total comprehensive income | 1,853.9 | 1,402.1 | 3,068.8 |
| Less: comprehensive income (loss) attributable to redeemable non-controlling interests | 59.7 | (129.1) | (10.6) |
| Comprehensive income attributable to T. Rowe Price Group | $1,794.2 | $1,531.2 | $3,079.4 |
(in millions)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net income | $1,835.7 | $1,449.6 | $3,098.5 |
| Adjustments to reconcile net income to net cash provided by operating activities | |||
| Depreciation, amortization and impairment of property, equipment and software | 254.8 | 225.7 | 204.8 |
| Amortization and impairment of acquisition-related assets and retention arrangements | 226.8 | 420.1 | — |
| Fair value remeasurement of contingent consideration liability | (82.4) | (161.2) | — |
| Stock-based compensation expense | 265.6 | 285.4 | 274.6 |
| Net (gains) losses recognized on other investments | (460.8) | 210.6 | (122.5) |
| Net investments in sponsored investment products used to economically hedge supplemental savings plan liability | 56.1 | (18.8) | (85.7) |
| Net change in securities held by consolidated sponsored investment products | (1,070.3) | 87.9 | 14.9 |
| Other changes in assets and liabilities | 193.6 | (139.9) | 67.4 |
| Net cash provided by operating activities | 1,219.1 | 2,359.4 | 3,452.0 |
| Cash flows from investing activities | |||
| Purchases of sponsored investment products | (85.3) | (55.1) | (48.0) |
| Dispositions of sponsored investment products | 616.6 | 263.6 | 1,625.8 |
| Net cash of sponsored investment products on consolidation (deconsolidation) | (56.8) | (8.7) | (16.9) |
| Additions to property and equipment | (307.9) | (237.6) | (239.1) |
| Acquisition, net of cash acquired | — | — | (2,450.8) |
| Other investing activity | (38.4) | (3.7) | 30.9 |
| Net cash used in investing activities | 128.2 | (41.5) | (1,098.1) |
| Cash flows from financing activities | |||
| Repurchases of common stock | (254.4) | (849.8) | (1,138.5) |
| Common share issuances under stock-based compensation plans | (18.0) | (36.2) | (81.6) |
| Dividends paid to common stock and equity-award holders | (1,121.7) | (1,107.4) | (1,701.9) |
| Net distributions to non-controlling interests in consolidated entities | (43.3) | (35.1) | — |
| Net subscriptions (redemptions) from redeemable non-controlling interest holders | 358.8 | (48.4) | (66.8) |
| Net cash used in financing activities | (1,078.6) | (2,076.9) | (2,988.8) |
| Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment products | 0.4 | 9.5 | 2.6 |
| Net change in cash and cash equivalents during period | 269.1 | 250.5 | (632.3) |
| Cash and cash equivalents at beginning of period, including $119.1 million at December 31, 2022, $101.1 million at December 31, 2021 and $104.8 million at December 31, 2020 held by consolidated sponsored investment products | 1,874.7 | 1,624.2 | 2,256.5 |
| Cash and cash equivalents at end of period, including $77.2 million at December 31, 2023, $119.1 million at December 31, 2022, and $101.1 million at December 31, 2021, held by consolidated sponsored investment products | $2,143.8 | $1,874.7 | $1,624.2 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (shares in thousands; dollars in millions)
| Commonsharesoutstanding · Commonstock · Additionalcapital inexcess of par value · Retainedearnings · AOCI(1) · Totalstockholders’equity attributable to T. Rowe Price Group, Inc. · Non-controlling interests in consolidated entities · Total permanent stockholders' equity · Redeemable non-controlling interests | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balances at December 31, 2020 | 227,965 | $45.6 | $654.6 | $7,029.8 | $(23.0) | $7,707.0 | $— | $7,707.0 | $1,561.7 | ||||
| Net income (loss) | — | — | — | 3,082.9 | — | 3,082.9 | — | 3,082.9 | 15.6 | ||||
| Other comprehensive income (loss), net of tax | — | — | — | — | (3.5) | (3.5) | — | (3.5) | (26.2) | ||||
| Dividends declared ($4.32 per share) | — | — | — | (1,003.5) | — | (1,003.5) | — | (1,003.5) | — | ||||
| Special cash dividend declared ($3.00 per share) | — | — | — | (699.5) | — | (699.5) | — | (699.5) | — | ||||
| Common stock-based compensation plans activity: | |||||||||||||
| Shares issued upon option exercises | 1,206 | 0.2 | 46.8 | — | — | 47.0 | — | 47.0 | — | ||||
| Restricted shares issued, net of shares withheld for taxes | 6 | — | — | — | — | — | — | — | — | ||||
| Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | 1,492 | 0.3 | (128.0) | — | — | (127.7) | — | (127.7) | — | ||||
| Stock-based compensation expense | — | — | 274.6 | — | — | 274.6 | — | 274.6 | — | ||||
| Restricted stock units issued as dividend equivalents | — | — | 0.6 | (0.7) | — | (0.1) | — | (0.1) | — | ||||
| Common shares repurchased | (5,941) | (1.2) | (809.4) | (325.4) | — | (1,136.0) | — | (1,136.0) | — | ||||
| Common shares issued for acquisition | 4,447 | 0.9 | 880.6 | 881.5 | — | 881.5 | — | ||||||
| Non-controlling interests | — | — | — | — | — | — | 248.7 | 248.7 | — | ||||
| Net redemptions from sponsored investment products | — | — | — | — | — | — | — | — | (67.7) | ||||
| Net deconsolidations of sponsored investment products | — | — | — | — | — | — | — | — | (501.1) | ||||
| Balances at December 31, 2021 | 229,175 | 45.8 | 919.8 | 8,083.6 | (26.5) | 9,022.7 | 248.7 | 9,271.4 | 982.3 | ||||
| Net income (loss) | — | — | — | 1,557.9 | — | 1,557.9 | (22.9) | 1,535.0 | (108.3) | ||||
| Other comprehensive income (loss), net of tax | — | — | — | — | (26.5) | (26.5) | — | (26.5) | (21.0) | ||||
| Dividends declared ($4.80 per share) | — | — | — | (1,108.7) | — | (1,108.7) | — | (1,108.7) | — | ||||
| Common stock-based compensation plans activity: | |||||||||||||
| Shares issued upon option exercises | 522 | 0.1 | 28.2 | — | — | 28.3 | — | 28.3 | — | ||||
| Restricted shares issued, net of shares withheld for taxes | 9 | — | — | — | — | — | — | — | — | ||||
| Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | 1,355 | 0.3 | (64.6) | — | — | (64.3) | — | (64.3) | — | ||||
| Stock-based compensation expense | — | — | 285.4 | — | — | 285.4 | — | 285.4 | — | ||||
| Restricted stock units issued as dividend equivalents | — | — | 0.5 | (0.5) | — | — | — | — | — | ||||
| Common shares repurchased | (6,751) | (1.3) | (731.4) | (122.6) | — | (855.3) | — | (855.3) | — | ||||
| Net distributions to non-controlling interests in consolidated entities | — | — | — | — | — | — | (35.1) | (35.1) | |||||
| Net redemptions from sponsored investment products | — | — | — | — | — | — | — | — | (49.3) | ||||
| Net deconsolidations of sponsored investment products | — | — | — | — | — | — | — | — | (147.0) | ||||
| Balances at December 31, 2022 | 224,310 | $44.9 | $437.9 | $8,409.7 | $(53.0) | $8,839.5 | $190.7 | $9,030.2 | $656.7 | ||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (shares in thousands; dollars in millions)
| Commonsharesoutstanding · Commonstock · Additionalcapital inexcess of par value · Retainedearnings · AOCI(1) · Totalstockholders’equity attributable to T. Rowe Price Group, Inc. · Non-controlling interests in consolidated entities · Total permanent stockholders' equity · Redeemable non-controlling interests | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balances at December 31, 2022 | 224,310 | $44.9 | $437.9 | $8,409.7 | $(53.0) | $8,839.5 | $190.7 | $9,030.2 | $656.7 | |||||
| Net income (loss) | — | — | — | 1,788.7 | — | 1,788.7 | 44.6 | 1,833.3 | 47.0 | |||||
| Other comprehensive income (loss), net of tax | — | — | — | — | 5.5 | 5.5 | — | 5.5 | 12.7 | |||||
| Dividends declared ($4.88 per share) | — | — | — | (1,121.9) | — | (1,121.9) | — | (1,121.9) | — | |||||
| Common stock-based compensation plans activity: | ||||||||||||||
| Shares issued upon option exercises | 585 | 0.1 | 35.6 | — | — | 35.7 | — | 35.7 | — | |||||
| Restricted shares withheld for taxes, net of shares issued | 57 | — | — | — | — | — | — | — | — | |||||
| Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | 1,413 | 0.3 | (54.0) | — | — | (53.7) | — | (53.7) | — | |||||
| Stock-based compensation expense | — | — | 265.6 | — | — | 265.6 | — | 265.6 | — | |||||
| Restricted stock units issued as dividend equivalents | — | — | 0.4 | (0.4) | — | — | — | — | — | |||||
| Common shares repurchased | (2,427) | (0.5) | (253.8) | — | (254.3) | — | (254.3) | — | ||||||
| Net distributions to non-controlling interests in consolidated entities | — | — | — | — | — | — | (43.3) | (43.3) | — | |||||
| Net subscriptions into sponsored investment products | — | — | — | — | — | — | — | — | 356.9 | |||||
| Net deconsolidations of sponsored investment products | — | — | — | — | — | — | — | — | (479.2) | |||||
| Balances at December 31, 2023 | 223,938 | $44.8 | $431.7 | $9,076.1 | $(47.5) | $9,505.1 | $192.0 | $9,697.1 | $594.1 | |||||
(1)Accumulated other comprehensive income
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