BUSINESS COMBINATIONS On May 24, 2019 , the company acquired Massachusetts Mutual Life Insurance Companys (MassMutual) asset management affiliate, OppenheimerFunds, with consideration to MassMutual and OppenheimerFunds employee shareholders consisting of $19.6 million in cash, 81.9 million shares of common stock and $4.0 billion in perpetual, non-cumulative preferred shares with a 21 -year non-call period and a fixed rate of 5.9% . The 81.9 million shares are composed of 75.7 million common shares issued on the closing date and 6.2 million Invesco restricted common stock awards granted to employee shareholders. MassMutual has an approximate 16.1% stake in the common stock of the combined firm as of June 30, 2019 . Invesco and MassMutual entered into a shareholder agreement, in which MassMutual has customary minority shareholder rights, including representation on Invescos board of directors. The shareholder agreement with MassMutual specifies a lock-up period of two years for the common stock and five years for the preferred stock. MassMutual may not sell common or preferred shares received as purchase consideration during the respective lock-up periods. The acquired business enhances the companys ability to meet client needs through its comprehensive range of high-conviction active, passive and alternative capabilities. The transaction was accounted for under the acquisition method of accounting. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the transaction. The issuance of common stock and preferred stock consideration represents a non-cash financing activity related to the statement of cash flows. The following table summarizes the initial estimate of amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the consideration transferred to acquire OppenheimerFunds. The allocation of the purchase price has been prepared on a preliminary basis and changes to the allocation to certain assets, liabilities and tax estimates may occur as additional information becomes available. The company will finalize the acquisition accounting (including the valuation) within the required measurement period, but in no event not later than one year from May 24, 2019 . Initial $ in millions Fair Value Estimate ASSETS Cash and cash equivalents 360.0 Accounts receivable 133.5 Investments 178.4 Prepaid assets 28.9 Other assets 184.2 Property, equipment and software, net 115.2 Intangible assets (1) 5,205.0 Goodwill (2) 1,180.5 Total assets 7,385.7 LIABILITES Accrued compensation and benefits 262.1 Accounts payable and accrued expenses 344.0 Deferred tax liabilities, net 1,199.1 Total liabilities 1,805.2 Total identifiable net assets 5,580.5 Summary of consideration Cash consideration 19.6 Common stock consideration (3) 1,453.6 Preferred stock consideration (4) 4,010.5 Other consideration (5) 96.8 Total cash and stock consideration 5,580.5 ____________ (1) Intangible assets are comprised of the following:  indefinite-lived intangible asset related to management contracts of $4,955.0 million consists primarily of contracts related to mutual funds.  finite-lived intangible asset related to management contracts of $221.0 million consists primarily of contracts related to sub-advised accounts and has an estimated useful life of eight years .  acquired trade name asset of $29.0 million has an estimated useful life of six years . The intangible assets created in the acquisition are not expected to be deductible for tax purposes. (2) Goodwill is calculated as the difference between the acquisition date fair value of the total consideration transferred and the aggregate values assigned to the assets acquired and liabilities assumed. The goodwill created in the acquisition is not expected to be deductible for tax purposes. The goodwill balance resulted primarily from the opening balance sheet net deferred tax liability. (3) The common shares were fair valued using the companys market price on closing date and reflects a discount for the common shares issued to MassMutual ( 75,563,041 shares) with a two-year lock-up period, resulting in a value of approximately $19.195 per share. Common shares issued to OppenheimerFunds employee shareholders ( 153,574 shares) were valued at the market price on closing date, which was $20.42 . (4) The preferred shares were fair valued using a discounted cash flow model, resulting in a value of $1,000 per share. (5) Other consideration primarily consists of the fair value of the vested portion of replacement employee common share-based awards. The changes in the carrying amount of goodwill from December 31, 2018 to June 30, 2019 are as follows, with the addition primarily due to the OppenheimerFunds acquisition: $ in millions Net Book Value January 1, 2019 7,157.1 Business combinations 1,171.9 Foreign exchange 60.3 June 30, 2019 8,389.3 Operating revenues of the acquired business from May 24 through June 30, 2019 were approximately $217.1 million , which represents the incremental impact of the acquired business and does not represent the stand-alone results of the acquired business. Net income is not available to be separately reported. Total revenues, expenses and net income of the acquired business in periods subsequent to June 30, 2019 will not be available to be separately reported due to the continued integration of the combined businesses. Transaction and integration costs related to the OppenheimerFunds acquisition included within the Transaction, integration, and restructuring line item on the Condensed Consolidated Statements of Income were $295.7 million and $330.6 million , for the three and six months ended June 30, 2019 . Of these amounts, $49.4 million and $51.9 million during the three and six months ended June 30, 2019 , respectively, were transaction-related costs, which primarily relate to advisory, legal, valuation, and other professional fees. Supplemental Pro Forma Information The following unaudited proforma summary presents consolidated information of the company as if the business combination had occurred on January 1, 2018, the earliest period presented herein. Three months ended June 30, Six months ended June 30, $ in millions 2019 2018 2019 2018 Operating revenues 1,750.9 1,908.6 3,471.7 3,841.6 Net income 89.7 271.6 305.8 575.2 The pro forma adjustments include dividends on preferred shares, transaction costs reflected in the initial periods, and adjustments to depreciation and intangible asset amortization expense. Cost savings or operating synergies expected to result from the acquisition are not included in the pro forma results. These proforma results are not indicative of the actual results of operations that would have been achieved nor are they indicative of future results of operations.