Company: TROW
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001113169-25-000007
Chunk: 121

Company: PRICE T ROWE GROUP INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 121
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ability period to period. Additionally, we do not emphasize the impact of this portion of non-operating income (loss) when managing and evaluating the firm's performance.

(6)    The income tax impacts were calculated in order to achieve an overall non-GAAP effective tax rate of 24.5% for 2024, 27.2% for 2023 and 24.7% for 2022. 

(7)    This non-GAAP measure was calculated by applying the two-class method to adjusted net income attributable to 

    T. Rowe Price Group and dividing by the weighted-average common shares outstanding assuming dilution. The calculation of net income allocated to common stockholders is as follows:

Year ended(in millions)202420232022Adjusted net income attributable to T. Rowe Price Group$2,139.5 $1,750.1 $1,864.8 Less: net income allocated to outstanding restricted stock and stock unit holders56.8 43.4 43.3 Adjusted net income allocated to common stockholders$2,082.7 $1,706.7 $1,821.5 

CAPITAL RESOURCES AND LIQUIDITY.

During 2024, stockholders’ equity attributable to T. Rowe Price Group, Inc. increased from $9.5 billion to $10.3 billion, and tangible book value increased to $7.5 billion at December 31, 2024 from $6.5 billion at December 31, 2023.

Sources of Liquidity

We have ample liquidity, including cash and investments in T. Rowe Price products as follows: 

(in millions)12/31/202412/31/2023Cash and cash equivalents$2,649.8 $2,066.6 Discretionary investments457.1 463.7 Total cash and discretionary investments3,106.9 2,530.3 Redeemable seed capital investments1,262.3 1,370.9 Investments used to hedge the deferred compensation liabilities1,110.9 894.6 Total cash and investments in T. Rowe Price products$5,480.1 $4,795.8 

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Our discretionary investment portfolio is comprised primarily of short duration fixed income ETFs, which typically yield higher than money market rates. Of our cash and cash equivalents, $653.9 million at December 31,