##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2007
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
 For the transition period from  to
 Commission file number 1-11123
 NUVEEN INVESTMENTS, INC.
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    36-3817266
(I.R.S. Employer
Identification No.)333 West Wacker Drive, Chicago, Illinois
(Address of principal executive offices)
    
    60606
(Zip Code)
 (312) 917-7700
 No Changes
  þ o
  þ o o
 o þ




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##### 



NUVEEN INVESTMENTS, INC.
 TABLE OF CONTENTS
 Page No.PART I. FINANCIAL INFORMATIONItem 1. Financial StatementsConsolidated Balance Sheets (Unaudited),
September 30, 2007 and December 31, 2006
    
    3Consolidated Statements of Income (Unaudited),
Three Months Ended September 30, 2007 and 2006
Nine Months Ended September 30, 2007 and 2006
    
    4Consolidated Statement of Changes in Common Stockholders
Equity (Unaudited), Nine Months Ended September 30, 2007
    
    5Consolidated Statements of Cash Flows (Unaudited),
Nine Months Ended September 30, 2007 and 2006
    
    6Notes to Consolidated Financial Statements
(Unaudited)
    
    7Item 2.Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    15Item 3.Quantitative and Qualitative Disclosures About Market Risk
    
    28Item 4.Controls and Procedures
    
    29PART II. OTHER INFORMATIONItem 1 through Item 6
    
    30Signatures
    
    33Certification of CEOCertification of Principal Financial OfficerSection 906 Certification of CEOSection 906 Certification of Principal Financial Officer




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##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 NUVEEN INVESTMENTS, INC.
 
 Consolidated Balance Sheets
Unaudited
(in thousands, except share data)
 September 30,
    
    
    December 31,2007
    
    
    2006ASSETSCash and cash equivalents
    
    $
    189,151
    
    
    $
    223,168Management and distribution fees receivable
    
    
    95,210
    
    
    
    87,239Other receivables
    
    
    62,943
    
    
    
    23,481Furniture, equipment, and leasehold improvements, at cost less accumulated depreciation
and amortization of $73,869 and $67,973, respectively
    
    
    40,280
    
    
    
    33,454Investments
    
    
    162,197
    
    
    
    129,099Goodwill
    
    
    670,048
    
    
    
    634,290Other intangible assets, at cost less accumulated amortization of $33,300 and $27,226,
respectively
    
    
    65,463
    
    
    
    67,374Current taxes receivable
    
    
    6,385
    
    
    
    4,007Other assets
    
    
    17,450
    
    
    
    25,660$
    1,309,127
    
    
    $
    1,227,772LIABILITIES AND STOCKHOLDERS EQUITYShort-Term Obligations:Notes payable
    
    $
    
    
    
    $
    100,000Accounts payable
    
    
    15,826
    
    
    
    13,885Accrued compensation and other expenses
    
    
    109,628
    
    
    
    120,431Other short-term liabilities
    
    
    56,152
    
    
    
    24,962Total Short-Term Obligations
    
    
    181,606
    
    
    
    259,278Long-Term Obligations:Senior term notes
    
    $
    545,122
    
    
    $
    544,504Deferred compensation
    
    
    45,398
    
    
    
    41,578Deferred income tax liability, net
    
    
    15,500
    
    
    
    23,280Other long-term liabilities
    
    
    27,925
    
    
    
    23,444Total Long-Term Obligations
    
    
    633,945
    
    
    
    632,806Total Liabilities
    
    
    815,551
    
    
    
    892,084Minority interest
    
    
    57,532
    
    
    
    44,969Common stockholders equity:Class A Common stock, $0.01 par value; 160,000,000 shares authorized;
120,911,480 shares issued at September 30, 2007 and December
31, 2006
    
    
    1,209
    
    
    
    1,209Additional paid-in capital
    
    
    320,866
    
    
    
    276,479Retained earnings
    
    
    1,180,963
    
    
    
    1,091,136Unamortized cost of restricted stock awards
    
    
    (26,031
    )
    
    
    (21,796
    )Accumulated other comprehensive income/(loss)
    
    
    (3,027
    )
    
    
    (1,141
    )1,473,980
    
    
    
    1,345,887Less common stock held in treasury, at cost (40,569,999 and 42,096,405 shares,
respectively)
    
    
    (1,037,936
    )
    
    
    (1,055,168
    )Total common stockholders equity
    
    
    436,044
    
    
    
    290,719$
    1,309,127
    
    
    $
    1,227,772
 See accompanying notes to consolidated financial statements.
 3




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##### Table of Contents



NUVEEN INVESTMENTS, INC.
 
 Consolidated Statements of Income
Unaudited
(in thousands, except per share data)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Operating revenues:Investment advisory fees from assets under
management
    
    $
    203,154
    
    
    $
    176,925
    
    
    $
    590,851
    
    
    $
    502,123Product distribution
    
    
    1,421
    
    
    
    1,697
    
    
    
    4,996
    
    
    
    3,668Performance fees / other revenue
    
    
    9,658
    
    
    
    3,284
    
    
    
    19,480
    
    
    
    8,437Total operating revenues
    
    
    214,233
    
    
    
    181,906
    
    
    
    615,327
    
    
    
    514,228Operating expenses:Compensation and benefits
    
    
    89,577
    
    
    
    72,911
    
    
    
    238,061
    
    
    
    186,378Advertising and promotional costs
    
    
    4,605
    
    
    
    3,728
    
    
    
    12,254
    
    
    
    9,073Occupancy and equipment costs
    
    
    6,793
    
    
    
    6,032
    
    
    
    20,172
    
    
    
    17,938Amortization of intangible assets
    
    
    2,071
    
    
    
    1,995
    
    
    
    6,074
    
    
    
    6,466Travel and entertainment
    
    
    3,026
    
    
    
    2,290
    
    
    
    7,887
    
    
    
    7,076Outside and professional services
    
    
    10,346
    
    
    
    7,411
    
    
    
    26,739
    
    
    
    22,098Minority interest expense
    
    
    1,867
    
    
    
    1,398
    
    
    
    6,245
    
    
    
    4,485Other operating expenses
    
    
    10,218
    
    
    
    9,324
    
    
    
    36,324
    
    
    
    24,165Total operating expenses
    
    
    128,503
    
    
    
    105,089
    
    
    
    353,756
    
    
    
    277,679Other income/(expense)
    
    
    (8,968
    )
    
    
    6,720
    
    
    
    (5,600
    )
    
    
    12,334Net interest expense
    
    
    (4,679
    )
    
    
    (6,678
    )
    
    
    (17,121
    )
    
    
    (22,412
    )Income before taxes
    
    
    72,083
    
    
    
    76,859
    
    
    
    238,850
    
    
    
    226,471Income taxes
    
    
    28,473
    
    
    
    30,676
    
    
    
    94,346
    
    
    
    89,024Net income
    
    $
    43,610
    
    
    $
    46,183
    
    
    $
    144,504
    
    
    $
    137,447Average common and common equivalent shares outstanding:Basic
    
    
    78,841
    
    
    
    77,669
    
    
    
    78,374
    
    
    
    77,833Diluted
    
    
    85,048
    
    
    
    82,934
    
    
    
    84,163
    
    
    
    83,029Earnings per common share:Basic
    
    $
    0.55
    
    
    $
    0.59
    
    
    $
    1.84
    
    
    $
    1.77Diluted
    
    $
    0.51
    
    
    $
    0.56
    
    
    $
    1.72
    
    
    $
    1.66
 See accompanying notes to consolidated financial statements.
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NUVEEN INVESTMENTS, INC.
 
 Consolidated Statement of Changes in Common Stockholders Equity
Unaudited
(in thousands)
 Unamortized
    
    
    AccumulatedClass A
    
    
    Additional
    
    
    
    
    
    
    Cost of
    
    
    OtherCommon
    
    
    Paid-In
    
    
    Retained
    
    
    Restricted
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Stock Awards
    
    
    Income/(Loss)
    
    
    Stock
    
    
    TotalBalance at December 31, 2006
    
    $
    1,209
    
    
    $
    276,479
    
    
    $
    1,091,136
    
    
    $
    (21,796
    )
    
    $
    (1,141
    )
    
    $
    (1,055,168
    )
    
    $
    290,719Change in accounting principle
(see Note 1)
    
    
    
    
    
    
    
    
    
    
    (903
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (903
    )Balance at December 31, 2006, as restated
    
    
    1,209
    
    
    
    276,479
    
    
    
    1,090,233
    
    
    
    (21,796
    )
    
    
    (1,141
    )
    
    
    (1,055,168
    )
    
    
    289,816Net income
    
    
    
    
    
    
    
    
    
    
    144,504
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    144,504Cash dividends paid
    
    
    
    
    
    
    
    
    
    
    (57,252
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (57,252
    )Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (41,572
    )
    
    
    (41,572
    )Compensation expense on options
    
    
    
    
    
    
    16,900
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,900Exercise of stock options
    
    
    
    
    
    
    (3,963
    )
    
    
    1,361
    
    
    
    
    
    
    
    
    
    
    
    47,749
    
    
    
    45,147Grant of restricted stock
    
    
    
    
    
    
    11,438
    
    
    
    2,117
    
    
    
    (18,235
    )
    
    
    
    
    
    
    12,841
    
    
    
    8,161Forfeit of restricted stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,936
    
    
    
    
    
    
    
    (1,936
    )
    
    
    Issuance of deferred stock
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    150
    
    
    
    148Amortization of restricted
stock awards
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,064
    
    
    
    
    
    
    
    
    
    
    
    12,064Tax effect of options exercised
and vested restricted stock
    
    
    
    
    
    
    20,014
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,014Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,886
    )
    
    
    
    
    
    
    (1,886
    )Balance at September 30, 2007
    
    $
    1,209
    
    
    $
    320,866
    
    
    $
    1,180,963
    
    
    $
    (26,031
    )
    
    $
    (3,027
    )
    
    $
    (1,037,936
    )
    
    $
    436,044
 Nine MonthsEnding 9/30/07Comprehensive Income (in 000s):Net income
    
    $
    144,504Other comprehensive income:Unrealized gains/(losses) on marketable equity securities, net of tax
    
    
    (1,143
    )Reclassification adjustments for realized (gains)/losses
    
    
    (119
    )Amortization of terminated cash flow hedge, net of tax
    
    
    (115
    )Funded status of pension & OPEB plans, net of tax
    
    
    (529
    )Foreign currency translation adjustment
    
    
    20Subtotal: other comprehensive income
    
    
    (1,886
    )Comprehensive Income
    
    $
    142,618
 Nine MonthsEnding 9/30/07Change in Shares Outstanding (in 000s):Shares outstanding at the beginning of the year
    
    
    78,815Shares issued under equity incentive plans
    
    
    2,388Shares acquired
    
    
    (822
    )Forfeit of restricted stock
    
    
    (40
    )Shares outstanding at September 30, 2007
    
    
    80,341
 See accompanying notes to consolidated financial statements.
 5




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##### Table of Contents



NUVEEN INVESTMENTS, INC.
 
 Consolidated Statements of Cash Flows
Unaudited
(in thousands)
 Nine Months EndedSeptember 30,2007
    
    
    2006Cash flows from operating activities:Net income
    
    $
    144,504
    
    
    $
    137,447Adjustments to reconcile net income to net cash
provided from operating activities:Deferred income taxes
    
    
    (6,605
    )
    
    
    (121
    )Depreciation of office property and
equipment
    
    
    7,312
    
    
    
    7,024Loss on sale of fixed assets
    
    
    101
    
    
    
    171Amortization of intangible assets
    
    
    6,074
    
    
    
    6,466Amortization of debt related costs, net
    
    
    429
    
    
    
    396Compensation expense for equity plans
    
    
    38,288
    
    
    
    31,899Net (increase) decrease in assets:Management and distribution fees
receivable
    
    
    (7,971
    )
    
    
    (6,430
    )Other receivables
    
    
    (849
    )
    
    
    4,163Other assets
    
    
    8,302
    
    
    
    (1,521
    )Net increase (decrease) in liabilities:Accrued compensation and other expenses
    
    
    (9,929
    )
    
    
    (10,412
    )Deferred compensation
    
    
    3,821
    
    
    
    4,131Accounts payable
    
    
    1,940
    
    
    
    (2,508
    )Current taxes payable
    
    
    (2,378
    )
    
    
    8,965Other liabilities
    
    
    (5,491
    )
    
    
    (7,065
    )Other
    
    
    (3,530
    )
    
    
    (5,578
    )Net cash provided from operating activities
    
    
    174,018
    
    
    
    167,027Cash flows from financing activities:Repayment of notes payable
    
    
    (100,000
    )
    
    
    (50,000
    )Dividends paid
    
    
    (57,252
    )
    
    
    (54,247
    )Proceeds from stock options exercised
    
    
    45,148
    
    
    
    47,942Acquisition of treasury stock, net
    
    
    (41,422
    )
    
    
    (65,996
    )Net deferred debt issuance related items
    
    
    
    
    
    
    50Tax effect of options and restricted stock
    
    
    20,014
    
    
    
    17,626Net cash used for financing activities
    
    
    (133,512
    )
    
    
    (104,625
    )Cash flows from investing activities:HydePark acquisition, net of cash acquired
    
    
    (9,706
    )
    
    
    Purchase of office property and equipment
    
    
    (14,251
    )
    
    
    (6,444
    )Proceeds from sales of investment securities
    
    
    21,935
    
    
    
    46,373Purchases of investment securities
    
    
    (46,883
    )
    
    
    (16,860
    )Repurchase of NWQ minority members interests
    
    
    (22,500
    )
    
    
    (22,642
    )Net change in consolidated mutual funds
    
    
    (2,942
    )
    
    
    2,164Other
    
    
    (196
    )
    
    
    (91
    )Net cash provided by/(used for) investing activities
    
    
    (74,543
    )
    
    
    2,500Effect of exchange rates on cash and cash equivalents
    
    
    20
    
    
    
    6Increase/(decrease) in cash and cash equivalents
    
    
    (34,017
    )
    
    
    64,908Cash and cash equivalents:Beginning of year
    
    
    223,168
    
    
    
    128,933End of period
    
    $
    189,151
    
    
    $
    193,841Supplemental Information:Taxes paid
    
    $
    83,315
    
    
    $
    64,741Interest paid
    
    $
    33,299
    
    
    $
    35,449
 See accompanying notes to consolidated financial statements.
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NUVEEN INVESTMENTS, INC.
 
 Notes to Consolidated Financial Statements
(Unaudited)
September 30, 2007
 Note 1 Basis of Presentation
      7




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Note 2 Earnings Per Common Share
  In thousands,
    
    
    For the three months endedexcept per share data
    
    
    September 30, 2007
    
    
    September 30, 2006Netincome
    
    Shares
    
    Per-share amount
    
    
    Net income
    
    Shares
    
    Per-share amountBasic EPS
    
    
    $
    43,610
    
    
    
    78,841
    
    
    $
    0.55
    
    
    
    $
    46,183
    
    
    
    77,669
    
    
    $
    0.59Dilutive effect of:Restricted stock
    
    
    
    
    
    
    
    1,052
    
    
    
    
    
    
    
    
    
    
    
    
    630Employee stock options
    
    
    
    
    
    
    
    5,155
    
    
    
    
    
    
    
    
    
    
    
    
    4,635Diluted EPS
    
    
    $
    43,610
    
    
    
    85,048
    
    
    $
    0.51
    
    
    
    $
    46,183
    
    
    
    82,934
    
    
    $
    0.56
 In thousands,
    
    
    For the nine months endedexcept per share data
    
    
    September 30, 2007
    
    
    September 30, 2006Netincome
    
    Shares
    
    Per-share amount
    
    
    Net income
    
    Shares
    
    Per-share amountBasic EPS
    
    
    $
    144,504
    
    
    
    78,374
    
    
    $
    1.84
    
    
    
    $
    137,447
    
    
    
    77,833
    
    
    $
    1.77Dilutive effect of:Restricted stock
    
    
    
    
    
    
    
    998
    
    
    
    
    
    
    
    
    
    
    
    
    553Employee stock options
    
    
    
    
    
    
    
    4,791
    
    
    
    
    
    
    
    
    
    
    
    
    4,643Diluted EPS
    
    
    $
    144,504
    
    
    
    84,163
    
    
    $
    1.72
    
    
    
    $
    137,447
    
    
    
    83,029
    
    
    $
    1.66
  8




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Note 3 Net Capital Requirement
  Note 4 Goodwill and Intangible Assets
  Balance at December 31, 2006
    
    $
    634,290Repurchase of NWQ minority interests
    
    
    22,500Santa Barbara acquisition costs
    
    
    (5
    )HydePark acquisition
    
    
    13,263Balance at September 30, 2007
    
    $
    670,048
    9




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At September 30, 2007
    
    
    At December 31, 2006Gross
    
    
    
    
    
    
    GrossCarrying
    
    
    Accumulated
    
    
    Carrying
    
    
    AccumulatedAmortizable Intangible Assets
    
    Amount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationSymphony customer relationships
    
    $
    43,800
    
    
    $
    13,780
    
    
    $
    43,800
    
    
    $
    12,113NWQ customer relationships
    
    
    22,900
    
    
    
    13,146
    
    
    
    22,900
    
    
    
    11,238Santa Barbara-Customer relationships
    
    
    26,200
    
    
    
    5,822
    
    
    
    26,200
    
    
    
    3,639Trademark / tradename
    
    
    1,700
    
    
    
    378
    
    
    
    1,700
    
    
    
    236HydePark (estimate)
    
    
    4,163
    
    
    
    174
    
    
    
    
    
    
    
    Total
    
    $
    98,763
    
    
    $
    33,300
    
    
    $
    94,600
    
    
    $
    27,226
  Note 5 Debt
  September 30, 2007
    
    December 31, 2006Short-Term Obligations:Notes payable
    
    $
    
    
    
    $
    100,000Long-Term Obligations:Senior Term Notes:Senior term notes  5 Year
    
    $
    250,000
    
    
    $
    250,000Net unamortized discount  5 year notes
    
    
    (429
    )
    
    
    (528
    )Senior term notes  10 Year
    
    
    300,000
    
    
    
    300,000Net unamortized discount  10 year notes
    
    
    (1,262
    )
    
    
    (1,354
    )Net unamortized debt issuance costs
    
    
    (3,187
    )
    
    
    (3,614
    )subtotal
    
    $
    545,122
    
    
    $
    544,504Total
    
    $
    545,122
    
    
    $
    644,504
 Senior Term Notes
  10




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Senior Revolving Credit Facility
  Other
  Note 6 Derivative Financial Instruments
   11




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Note 7 Retirement Plans
  Three Months
    
    
    Three MonthsEnded September 30, 2007
    
    
    Ended September 30, 2006Total
    
    
    Post-
    
    
    Total
    
    
    Post-Pension
    
    
    Retirement
    
    
    Pension
    
    
    RetirementService Cost
    
    $
    374,633
    
    
    $
    141,441
    
    
    $
    436,250
    
    
    $
    60,000Interest Cost
    
    
    543,652
    
    
    
    213,645
    
    
    
    522,250
    
    
    
    135,250Expected Return on Assets
    
    
    (567,176
    )
    
    
    
    
    
    
    (561,750
    )
    
    
    Amortization of:Unrecognized Prior
Service Cost
    
    
    (651
    )
    
    
    (66,307
    )
    
    
    
    
    
    
    (66,250
    )Unrecognized (Gain)/Loss
    
    
    45,289
    
    
    
    82,765
    
    
    
    106,250
    
    
    
    22,000Total
    
    $
    395,747
    
    
    $
    371,544
    
    
    $
    503,000
    
    
    $
    151,000Nine Months
    
    
    Nine MonthsEnded September 30, 2007
    
    
    Ended September 30, 2006Total
    
    
    Post-
    
    
    Total
    
    
    Post-Pension
    
    
    Retirement
    
    
    Pension
    
    
    RetirementService Cost
    
    $
    1,317,895
    
    
    $
    300,205
    
    
    $
    1,308,750
    
    
    $
    180,000Interest Cost
    
    
    1,684,998
    
    
    
    496,379
    
    
    
    1,566,750
    
    
    
    405,750Expected Return on Assets
    
    
    (1,713,812
    )
    
    
    
    
    
    
    (1,685,250
    )
    
    
    Amortization of:Unrecognized Prior
Service Cost
    
    
    (1,955
    )
    
    
    (198,923
    )
    
    
    
    
    
    
    (198,750
    )Unrecognized (Gain)/Loss
    
    
    183,089
    
    
    
    123,235
    
    
    
    318,750
    
    
    
    66,000Total
    
    $
    1,470,215
    
    
    $
    720,896
    
    
    $
    1,509,000
    
    
    $
    453,000
  12




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##### Table of Contents



Note 8 Structuring Fees
  Note 9 Trailer Fees
  Note 10 Investments in Collateralized Loan and Debt Obligations
   13




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##### Table of Contents



Note 11 Gain Contingency
  14




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##### Table of Contents



Part I. FINANCIAL INFORMATION
 
 Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
 September 30, 2007
 Description of the Business
    ® ®
  15




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##### Table of Contents



Recent Events
   Summary of Operating Results
  Financial Results Summary  Company Operating Statistics  ($ in millions, except per share amounts)
 Three months ended September 30,
    
    
    Nine months ended September 30,2007
    
    2006
    
    % change
    
    
    2007
    
    2006
    
    % changeGross sales of investment products
    
    
    $
    5,135
    
    
    $
    6,694
    
    
    
    (23
    )%
    
    
    $
    21,097
    
    
    $
    25,990
    
    
    
    (19
    )%Net flows of investment products
    
    
    
    (1,411
    )
    
    
    2,402
    
    
    
    (159
    )
    
    
    
    3,528
    
    
    
    13,378
    
    
    
    (74
    )Assets under management(1)(2)
    
    
    
    170,394
    
    
    
    154,167
    
    
    
    11
    
    
    
    
    170,394
    
    
    
    154,167
    
    
    
    11Operating revenues
    
    
    
    214.2
    
    
    
    181.9
    
    
    
    18
    
    
    
    
    615.3
    
    
    
    514.2
    
    
    
    20Operating expenses
    
    
    
    128.5
    
    
    
    105.1
    
    
    
    22
    
    
    
    
    353.8
    
    
    
    277.7
    
    
    
    27Net interest expense
    
    
    
    4.7
    
    
    
    6.7
    
    
    
    (30
    )
    
    
    
    17.1
    
    
    
    22.4
    
    
    
    (24
    )Income taxes
    
    
    
    28.5
    
    
    
    30.7
    
    
    
    (7
    )
    
    
    
    94.3
    
    
    
    89.0
    
    
    
    6Net income
    
    
    
    43.6
    
    
    
    46.2
    
    
    
    (6
    )
    
    
    
    144.5
    
    
    
    137.4
    
    
    
    5Basic earnings per share
    
    
    
    0.55
    
    
    
    0.59
    
    
    
    (7
    )
    
    
    
    1.84
    
    
    
    1.77
    
    
    
    4Diluted earnings per share
    
    
    
    0.51
    
    
    
    0.56
    
    
    
    (9
    )
    
    
    
    1.72
    
    
    
    1.66
    
    
    
    4Dividends per share
    
    
    
    0.24
    
    
    
    0.24
    
    
    
    
    
    
    
    
    0.72
    
    
    
    0.69
    
    
    
    4
 (1)
    
    At period end.(2)
    
    Excludes defined portfolio assets under surveillance. 16




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##### Table of Contents



Results of Operations
    Gross Investment Product Sales  (in millions)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Closed-End Funds
    
    $
    47
    
    
    $
    369
    
    
    $
    1,476
    
    
    $
    595Mutual Funds
    
    
    1,212
    
    
    
    1,374
    
    
    
    4,752
    
    
    
    4,226Retail Managed Accounts
    
    
    1,764
    
    
    
    2,501
    
    
    
    6,783
    
    
    
    14,605Institutional Managed Accounts
    
    
    2,112
    
    
    
    2,450
    
    
    
    8,086
    
    
    
    6,564Total
    
    $
    5,135
    
    
    $
    6,694
    
    
    $
    21,097
    
    
    $
    25,990
   17




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##### Table of Contents



Net Flows  (in millions)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Closed-End Funds
    
    $
    37
    
    
    $
    380
    
    
    $
    1,501
    
    
    $
    602Mutual Funds
    
    
    (3
    )
    
    
    886
    
    
    
    1,633
    
    
    
    2,607Retail Managed Accounts
    
    
    (1,782
    )
    
    
    (454
    )
    
    
    (3,582
    )
    
    
    5,837Institutional Managed Accounts
    
    
    337
    
    
    
    1,590
    
    
    
    3,976
    
    
    
    4,332Total
    
    $
    (1,411
    )
    
    $
    2,402
    
    
    $
    3,528
    
    
    $
    13,378
     Net Assets Under Management (1)  (in millions)
 September 30,
    
    
    December 31,
    
    
    September 30,2007
    
    
    2006
    
    
    2006Closed-End Funds
    
    $
    53,234
    
    
    $
    52,958
    
    
    $
    52,791Mutual Funds
    
    
    19,967
    
    
    
    18,532
    
    
    
    17,407Retail Managed Accounts
    
    
    58,119
    
    
    
    58,556
    
    
    
    55,634Institutional Managed Accounts
    
    
    39,074
    
    
    
    31,563
    
    
    
    28,335Total
    
    $
    170,394
    
    
    $
    161,609
    
    
    $
    154,167
 
 (1)
    
    Excludes defined portfolio product assets under surveillance.
  18




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Change in Net Assets Under Management  (in millions)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Gross Sales
    
    $
    5,135
    
    
    $
    6,694
    
    
    $
    21,097
    
    
    $
    25,990Reinvested Dividends
    
    
    109
    
    
    
    102
    
    
    
    319
    
    
    
    251Redemptions
    
    
    (6,655
    )
    
    
    (4,394
    )
    
    
    (17,888
    )
    
    
    (12,863
    )Net Flows
    
    
    (1,411
    )
    
    
    2,402
    
    
    
    3,528
    
    
    
    13,378Acquisition
    
    
    
    
    
    
    
    
    
    
    363
    
    
    
    Appreciation/(Depreciation)
    
    
    203
    
    
    
    2,771
    
    
    
    4,894
    
    
    
    4,672Increase/Decrease in Assets
    
    $
    (1,208
    )
    
    $
    5,173
    
    
    $
    8,785
    
    
    $
    18,050
     Investment Advisory Fees (1)  (in thousands)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Closed-End Funds
    
    $
    67,979
    
    
    $
    63,893
    
    
    $
    198,249
    
    
    $
    187,411Mutual Funds
    
    
    28,458
    
    
    
    23,187
    
    
    
    83,074
    
    
    
    64,514Managed Accounts
    
    
    106,717
    
    
    
    89,845
    
    
    
    309,528
    
    
    
    250,198Total
    
    $
    203,154
    
    
    $
    176,925
    
    
    $
    590,851
    
    
    $
    502,123
 
 (1)
    
    Sub-advisory fee expense for the three month periods ended September
30, 2007 and 2006 was $7.4 million and $6.2 million, respectively, and $23.2 million
and $19.5 million, respectively, for the nine month periods ended on such dates.
  19




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Product Distribution  (in thousands)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Closed-End Funds
    
    $
    47
    
    
    $
    90
    
    
    $
    1,714
    
    
    $
    377Muni/Fund
Preferred®
    
    
    1,081
    
    
    
    1,245
    
    
    
    3,198
    
    
    
    3,623Mutual Funds
    
    
    293
    
    
    
    362
    
    
    
    84
    
    
    
    (332
    )Total
    
    $
    1,421
    
    
    $
    1,697
    
    
    $
    4,996
    
    
    $
    3,668
 ®
 Performance Fees/Other Revenue
  20




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Operating Expenses
   Operating Expenses  (in thousands)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Compensation and benefits
    
    $
    89,577
    
    
    $
    72,911
    
    
    $
    238,061
    
    
    $
    186,378Advertising and promotional costs
    
    
    4,605
    
    
    
    3,728
    
    
    
    12,254
    
    
    
    9,073Occupancy and equipment costs
    
    
    6,793
    
    
    
    6,032
    
    
    
    20,172
    
    
    
    17,938Amortization of intangible assets
    
    
    2,071
    
    
    
    1,995
    
    
    
    6,074
    
    
    
    6,466Travel and entertainment
    
    
    3,026
    
    
    
    2,290
    
    
    
    7,887
    
    
    
    7,076Outside and professional services
    
    
    10,346
    
    
    
    7,411
    
    
    
    26,739
    
    
    
    22,098Minority interest expense
    
    
    1,867
    
    
    
    1,398
    
    
    
    6,245
    
    
    
    4,485Other operating expenses
    
    
    10,218
    
    
    
    9,324
    
    
    
    36,324
    
    
    
    24,165Total
    
    $
    128,503
    
    
    $
    105,089
    
    
    $
    353,756
    
    
    $
    277,679% of Operating Revenue
    
    
    60.0
    %
    
    
    57.7
    %
    
    
    57.5
    %
    
    
    54.0
    %
 Summary
  Compensation and Benefits
  Occupancy and Equipment Costs
  21




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##### Table of Contents



Amortization of Intangibles
   Outside and Professional Services
  Minority Interest Expense
  All Other Operating Expenses
   Other Income/(Expense)
    Other Income/(Expense)  (in thousands)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Gains/(Losses) on Investments
    
    $
    478
    
    
    $
    6,976
    
    
    $
    3,640
    
    
    $
    12,820Gains/(Losses) on Fixed Assets
    
    
    (40
    )
    
    
    
    
    
    
    (101
    )
    
    
    (171
    )Miscellaneous Income/(Expense)
    
    
    (9,406
    )
    
    
    (256
    )
    
    
    (9,139
    )
    
    
    (315
    )Total
    
    $
    (8,968
    )
    
    $
    6,720
    
    
    $
    (5,600
    )
    
    $
    12,334
 22




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##### Table of Contents



Net Interest Expense
   Net Interest Expense  (in thousands)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Dividend and Interest Revenue
    
    $
    3,627
    
    
    $
    3,008
    
    
    $
    9,580
    
    
    $
    7,198Interest Expense
    
    
    (8,306
    )
    
    
    (9,686
    )
    
    
    (26,701
    )
    
    
    (29,610
    )Total
    
    $
    (4,679
    )
    
    $
    (6,678
    )
    
    $
    (17,121
    )
    
    $
    (22,412
    )
  Recent Accounting Pronouncements
 SFAS No. 157
  23




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##### Table of Contents



SFAS No. 159
  Capital Resources, Liquidity and Financial Condition
  Senior Term Notes
  Senior Revolving Credit Facility
  24




---



##### Table of Contents



Other
  Equity and Dividends
   th
  25




---



##### Table of Contents



Broker/Dealer
  Adequacy of Liquidity
  Inflation
  Forward-Looking Information and Risks
   26




---



##### Table of Contents



27




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##### Table of Contents



Part I. FINANCIAL INFORMATION
 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
 September 30, 2007
 Market Risk
  Interest Rate Sensitivity
     28




---



##### Table of Contents



Equity Market Sensitivity
  
 Item 4. Controls and Procedures
  29




---



##### Table of Contents



PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
 Robert Summerfield v. Nuveen Investments, Inc., et al. Brockton Contributory Retirement Sys. v. Nuveen Investments, Inc.
     Item 1A. Risk Factors
  Failure to complete the merger could negatively impact the market price of our common stock.
  
    
    the market price of our common stock may decline substantially to the extent that the
current market price of our common stock reflects a market assumption that the merger will
be completed;
    
    costs relating to the merger agreement, such as legal, accounting and financial advisory
fees, and in specified circumstances, termination and expense reimbursement fees, must be
paid by us even if the merger is not
 30




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##### Table of Contents



completed and our ability to recover from the purchaser and certain guarantors of the
purchaser will be limited and subject to certain conditions; and
    
    the diversion of our managements attention from the day-to-day business of Nuveen
Investments and the potential disruption to our employees and our relationships with
customers, clients, investment teams and distributors during the period before the
completion of the merger may make it difficult for us to achieve our strategic plan if the
merger does not occur.
   Uncertainties associated with the merger may cause us to lose key personnel.
  A case pending before the United States Supreme Court could result in states not being able to tax in-state and out-of-state bonds
differently which could adversely affect us
 Davis V. Kentucky Department of Revenue
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 ISSUER PURCHASES OF EQUITY SECURITIES
 
 (c) Total
    
    
    (d) MaximumNumber
    
    
    Numberof Shares
    
    
    of SharesPurchased
    
    
    that May(a) Total
    
    
    
    
    
    
    as Part of
    
    
    Yet BeNumber
    
    
    (b) Average
    
    
    a Publicly
    
    
    Purchasedof Shares
    
    
    Price Paid
    
    
    Announced
    
    
    Under thePeriod
    
    Purchased
    
    
    per Share
    
    
    Program
    
    
    ProgramShare purchases prior to July 1, 2007
under current repurchase program:
    
    
    1,665,217
    
    
    $
    50.30
    
    
    
    1,665,217
    
    
    
    5,758,967July 1, 2007  July 31, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,758,967August 1, 2007  August 31, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,758,967September 1, 2007  September 30, 2007
    
    
    17,947
    
    
    
    62.59
    
    
    
    17,947
    
    
    
    5,741,020Total
    
    
    1,683,164
    
    
    $
    50.57
    
    
    
    1,683,164
    
    
    
    5,741,020
 
  31




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##### Table of Contents



Item 3. Defaults Upon Senior Securities
  Item 4. Submission of Matters to a Vote of Security Holders
   For:
    
    
    Against:
    
    
    
    Abstain:52,957,531
    
    
    5,768,689
    
    
    
    1,218,554
 Item 5. Other Information
  Item 6. Exhibits
  31.1*
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934.31.2*
    
    Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934.32.1*
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    filed herewith 32




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##### Table of Contents



SIGNATURE
  NUVEEN INVESTMENTS, INC.
(Registrant)Date:October 19, 2007
    By
    
    /s/ Glenn R. RichterGlenn R. RichterExecutive Vice President andChief Administrative Officer
Principal Financial OfficerDate:October 19, 2007
    By
    
    /s/ Sherri A. HlavacekSherri A. HlavacekVice President and Corporate
Controller
Principal Accounting Officer 33




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description31.1*
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934.31.2*
    
    Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934.32.1*
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    filed herewith E-1