CNS AR24 Digital - Book - Page 47
Employee compensation and benefits increased from the year ended December 31, 2023 primarily due to higher
amortization of restricted stock units of $7.7 million, including $5.8 million of accelerated vesting of certain restricted
stock units. Additionally, there were increases in incentive compensation of $4.3 million and salaries of $2.7 million.
Distribution and service fee expenses increased by $3.0 million from the year ended December 31, 2023 primarily due
to higher average assets under management in U.S. open-end funds.
General and administrative expenses decreased from the year ended December 31, 2023 primarily due to lower rent
expense of $8.5 million related to the expiration of the lease for the Company9s prior headquarters in January 2024, partially
offset by higher technology expenses of $911,000 and travel and entertainment of $748,000.
Depreciation and amortization increased from the year ended December 31, 2023 primarily due to depreciation
and amortization of fixed assets and leasehold improvements associated with the Company's current headquarters that were
placed in service in December 2023.
Operating margin for the year ended December 31, 2024 decreased to 33.4% from 33.6% for the year ended
December 31, 2023.
Non-operating Income (Loss)
Year Ended December 31, 2024
(in thousands)
Consolidated
Funds (1)
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Gain (loss) from investments4net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency gain (loss)4net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net (income) loss attributable to noncontrolling interests . . . . . . . . . . . . . . . . .
Non-operating income (loss) attributable to the Company . . . . . . . . . . . . . . . . . $
Corporate Seed and Other
3,117 $
15,573
(578)
18,112
(11,527)
6,585 $
Total
16,227 $
1,009
1,316
18,552
4
18,552 $
19,344
16,582
738
36,664
(11,527)
25,137
Year Ended December 31, 2023
(in thousands)
Consolidated
Funds (1)
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Gain (loss) from investments4net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency gain (loss)4net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net (income) loss attributable to noncontrolling interests . . . . . . . . . . . . . . . . .
Non-operating income (loss) attributable to the Company . . . . . . . . . . . . . . . . . $
Corporate Seed and Other
3,622 $
4,915
(556)
7,981
(7,560)
421 $
10,996 $
(624)
(2,579)
7,793
4
7,793 $
Total
14,618
4,291
(3,135)
15,774
(7,560)
8,214
_________________________
(1) Represents seed investments in funds that we are required to consolidate under U.S. GAAP.
Income Taxes
A reconciliation of the Company9s statutory federal income tax rate to the effective income tax rate is summarized in
the following table:
Years Ended December 31,
2024
U.S. statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State and local income taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-deductible executive compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits related to the vesting and delivery of restricted stock units . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
21.0 %
2.7
1.2
(0.7)
(0.3)
(0.3)
23.6 %
2023
21.0 %
3.2
1.9
0.4
(1.2)
4
25.3 %
