Three Months Ended June 30,

2018

2017

Change

Revenue

$

35,927,715

$

35,542,541

    Net operating income

16,349,539

15,966,748

2%

    Operating margin

46

%

45

%

Investment income, net

3,565,669

3,024,729

Income tax provision

(5,017,185)

(6,024,458)

(17)%

Net income attributable to common shareholders

14,370,368

12,638,439

14%

Earnings per share attributable to common shareholders - diluted

$

4.08

$

3.66

11%

Six Months Ended June 30,

2018

2017

Revenue

$

73,709,717

$

70,581,614

4%

    Net operating income

34,553,490

31,708,222

9%

    Operating margin

47

%

45

%

Investment income, net

2,005,946

6,905,973

Income tax provision

(8,719,285)

(12,521,728)

(30)%

Net income attributable to common shareholders

27,359,828

25,395,334

8%

Earnings per share attributable to common shareholders - diluted

$

7.81

$

7.38

6%

As Of

June 30, 2018

December 31, 2017

June 30, 2017

Assets under management (millions)

$

21,827

$

22,317

$

20,924

Book value per share

$

58.62

$

49.69

$

49.37

Total outstanding shares

3,532,634

3,470,428

3,457,775

For the Three Months Ended June 30,

(in millions)

2018

2017

AUM at beginning of the period

$

21,929

$

20,333

Net cash inflows (outflows)

    proprietary funds

(362)

389

    sub-advised funds

23

(54)

    institutional accounts

(53)

(142)

(392)

193

Net market appreciation and income

290

398

Increase (decrease) during the period

(102)

591

AUM at end of the period

$

21,827

$

20,924

Change in Assets Under Management

For the Six Months Ended June 30,

(in millions)

2018

2017

AUM at beginning of the period

$

22,317

$

19,381

Net cash inflows (outflows)

    proprietary funds

(174)

698

    sub-advised funds

126

(132)

    institutional accounts

(88)

(207)

(136)

359

Net market appreciation (depreciation) and income

(354)

1,184

Increase (decrease) during the period

(490)

1,543

AUM at end of the period

$

21,827

$

20,924

Three Months Ended

 June 30,

(in thousands, except percentages and per share data)

2018

2017

2018

2017

Total revenue

$

35,928

$

35,543

$

73,710

$

70,582

Net operating income, GAAP basis

$

16,350

$

15,967

$

34,553

$

31,708

Non-GAAP adjustment:

Gains (losses) on deferred compensation plan investments, net⁽¹⁾

456

436

(60)

1,021

Net operating income, as adjusted, non-GAAP basis⁽²⁾

16,806

16,403

34,493

32,729

Non-GAAP adjustment:

Tax provision on net operating income, as adjusted, non-GAAP

basis⁽³⁾

(4,234)

(5,203)

(8,226)

(10,613)

Net operating income, as adjusted, after tax, non-GAAP basis⁽⁴⁾

$

12,572

$

11,200

$

26,267

$

22,116

Net operating income, as adjusted after tax per diluted share, non-

GAAP basis⁽⁵⁾

$

3.57

$

3.25

$

7.49

$

6.43

Diluted weighted average shares outstanding, GAAP basis

3,520

3,449

3,505

3,441

Operating profit margin, GAAP basis

46

%

45

%

47

%

45

%

Operating profit margin, as adjusted, non-GAAP basis⁽⁶⁾

47

%

46

%

47

%

46

%

⁽¹⁾ Gains (losses) on deferred compensation plan investments, net: The gain (loss) on deferred compensation plan investments, which increases (decreases) deferred compensation expense included in operating income, is removed from operating income in the calculation because it is offset by an equal amount in investment income (loss) below net operating income on the income statement, and thus has no impact on net income attributable to the Company.

⁽²⁾ Net operating income, as adjusted: This non-GAAP measure was calculated by taking the Company's net operating income adjusted to exclude the impact on compensation expense of gains and losses on investments in the deferred compensation plan.

⁽³⁾ Tax provision on net operating income, as adjusted: This non-GAAP measure represents the tax provision excluding the impact of investment related activity and is calculated by applying the tax rate from the actual tax provision to net operating income, as adjusted.

⁽⁴⁾ Net operating income, as adjusted, after tax: This non-GAAP measure was calculated by taking the net operating income, as adjusted, less the tax provision on net operating income, as adjusted.

⁽⁵⁾ Net operating income, as adjusted after tax per diluted share: This non-GAAP measure was calculated by dividing the net operating income, as adjusted after tax, by diluted weighted average shares outstanding.

⁽⁶⁾ Operating profit margin, as adjusted: This non-GAAP measure was calculated by dividing the net operating income, as adjusted, by total revenue.