Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

21. SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in two business segments as described in Note 1 above - Financial Advisory and Asset Management. In addition, as described in Note 1 above, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the years ended December 31, 2013, 2012 and 2011 is prepared using the following methodology:

• Revenue and expenses directly associated with each segment are included in determining operating income.

• Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

• Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.

The Company allocates investment gains and losses, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, legal, facilities management and senior management activities.

For the years ended December 31, 2013, 2012 and 2011, no individual client constituted more than 10% of the net revenue of any of the Company’s business segments.

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

		As Of Or For The Year Ended December 31,
		2013(b)			2012(b)			2011
Financial Advisory	Net Revenue	$	980,577		$	1,049,090		$	992,107
	Operating Expenses (a)		959,668			1,057,620			929,688
	Operating Income (Loss)	$	20,909		$	(8,530	)	$	62,419
	Total Assets	$	714,708		$	793,007		$	767,699
Asset Management	Net Revenue	$	1,039,130		$	896,260		$	897,401
	Operating Expenses (a)		704,045			659,502			628,945
	Operating Income	$	335,085		$	236,758		$	268,456
	Total Assets	$	612,018		$	566,677		$	583,524
Corporate	Net Revenue	$	(34,355	)	$	(32,902	)	$	(59,996	)
	Operating Expenses (a)		104,832			71,441			35,380
	Operating Loss	$	(139,187	)	$	(104,343	)	$	(95,376	)
	Total Assets	$	1,684,411		$	1,627,209		$	1,730,713
Total	Net Revenue	$	1,985,352		$	1,912,448		$	1,829,512
	Operating Expenses (a)		1,768,545			1,788,563			1,594,013
	Operating Income	$	216,807		$	123,885		$	235,499
	Total Assets	$	3,011,137		$	2,986,893		$	3,081,936

(a) Operating expenses include depreciation and amortization of property as set forth in table below.

	Year Ended December 31,
	2013		2012		2011
Financial Advisory	$	5,256	$	5,710	$	6,739
Asset Management		2,556		3,250		3,502
Corporate		26,938		21,895		14,339
Total	$	34,750	$	30,855	$	24,580

(b) See Note 16 of Notes to Consolidated Financial Statements for information regarding the Cost Saving Initiatives announced by the Company in 2013 and 2012, and the impact on each of the Company’s business segments.

Geographic Information

Due to the highly integrated nature of international financial markets, the Company manages its business based on the profitability of the enterprise as a whole. Accordingly, management believes that profitability by geographic region is not necessarily meaningful. The Company’s revenue and identifiable assets are generally allocated based on the country or domicile of the legal entity providing the service.

The following table sets forth the net revenue from, and identifiable assets for, the Company and its consolidated subsidiaries by geographic region allocated on the basis described above.

	As Of Or For The Year Ended December 31,
	2013			2012			2011
Net Revenue:
United States	$	1,217,014		$	1,172,566		$	1,083,457
United Kingdom		205,695			180,784			190,307
France		281,740			265,523			234,441
Other Western Europe		123,975			132,754			174,284
Rest of World		156,928			160,821			147,023
Total	$	1,985,352		$	1,912,448		$	1,829,512
Operating Income (Loss):
United States	$	234,247		$	169,111		$	209,236
United Kingdom		(6,474	)		(37,329	)		(18,074	)
France		14,845			8,332			8,262
Other Western Europe		(8,260	)		(20,812	)		27,276
Rest of World		(17,551	)		4,583			8,799
Total	$	216,807		$	123,885		$	235,499
Identifiable Assets:
United States	$	1,529,695		$	1,507,331		$	1,630,547
United Kingdom		239,606			226,578			253,365
France		824,712			808,655			773,196
Other Western Europe		118,939			114,763			116,682
Rest of World		298,185			329,566			308,146
Total	$	3,011,137		$	2,986,893		$	3,081,936