SEGMENT REPORTING

3 Months Ended

Mar. 31, 2020

We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management reviews the financial information for operational decision-making purposes. The Company’s chief operating decision maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues and Economic Earnings. Refer to the "Supplemental Financial Information" section in Item 2. "Management Discussion and Analysis of Financial Conditions and Results" for the Economic Earnings calculation. Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment.

Advisory

Our Advisory segment provides investment advisory services to (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, (ii) subadvisory relationships where Westwood provides investment management services to the Westwood Funds®, funds offered by other financial institutions and funds offered by our Trust segment and (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts. Westwood Management and Westwood International Advisors, which provide investment advisory services to similar clients, are included in our Advisory segment.

Trust

Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment.


(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended March 31, 2020
Net fee revenues from external sources	$	11,102	$	5,951	$	—	$	—	$	17,053
Net intersegment revenues	624		50		—		(674)		—
Net interest and dividend revenue	20		—		—		—		20
Other, net	(404)		—		—		—		(404)
Total revenues	$	11,342	$	6,001	$	—	$	(674)	$	16,669






Segment assets	$	236,817	$	49,606	$	21,962	$	(150,583)	$	157,802
Segment goodwill	$	3,403	$	16,401	$	—	$	—	$	19,804

Three Months Ended March 31, 2019
Net fee revenues from external sources	$	16,586	$	6,539	$	—	$	—	$	23,125
Net intersegment revenues	1,016		71		—		(1,087)		—
Net interest and dividend revenue	225		86		—		—		311
Other, net	432		(6)		—		—		426
Total revenues	$	18,259	$	6,690	$	—	$	(1,087)	$	23,862






Segment assets	$	226,362	$	62,696	$	19,746	$	(127,655)	$	181,149
Segment goodwill	$	3,403	$	16,401	$	—	$	—	$	19,804